Forex Equilibrium Review – A Comprehensive Look at This Forex Trading Tool
Forex Equilibrium is a relatively new forex trading indicator created by trading expert Karl Dittmann. This review will take an in-depth look at Forex Equilibrium to understand how it works and whether it is worth the investment for forex traders.
Overview of Forex Equilibrium
Forex Equilibrium is marketed as a simple yet powerful indicator that generates accurate buy and sell signals right on the chart. It aims to identify high-probability trades and provide clear entry and exit points.
Some key features of Forex Equilibrium include:
- Works on MT4 platform
- Applicable on all major currency pairs
- Provides clear arrows for entry and exit points
- No repainting of signals
- Comes with user guide and tutorial videos
The indicator is priced at $147 for a single user license.
How Forex Equilibrium Works
Forex Equilibrium is designed on the premise of identifying imbalances between supply and demand in the market. The buy and sell signals are generated when the indicator detects a supply-demand imbalance that is expected to correct itself.
It does this by continuously monitoring multiple factors that influence the supply and demand dynamics. These factors include interest rates, economic performance, political stability, trade balances, and market sentiment.
When the indicator detects an imbalance, it plots a signal arrow pointing in the direction of the expected correction. So a buy signal would indicate that demand exceeds supply and prices are expected to move up, while a sell signal shows supply outweighing demand so prices are expected to fall.
The indicator works on multiple timeframes, including M15, M30, H1, H4 and D1. The developer recommends using higher timeframes like H4 and D1 for the most reliable signals.
Using Forex Equilibrium
Using Forex Equilibrium involves three simple steps:
- Install the indicator on a MT4 chart of a currency pair. It can be added like any standard indicator in MT4.
- Look for buy and sell signal arrows plotted directly on the chart.
- Enter a trade when a new signal arrow appears and exit when an opposite signal arrow is plotted.
The indicator provides optimal entry and exit points for traders. No additional confirmation is needed.
The developer advises using it mainly on the 7 major currency pairs and recommends a minimum time frame of H1.
Performance and Accuracy
Based on extensive backtesting, Forex Equilibrium performs well in terms of win rate and risk-reward ratio. Results may vary across different currency pairs and time frames.
On EUR/USD on the H4 timeframe, it achieved 65% accuracy with an average 1:2 risk-reward ratio over a 10 year backtest period. The win rate and risk-reward can be further improved by using optimal risk management strategies.
User reviews also highlight the accuracy of the signals in live trading, especially on higher timeframes. Many users reported consistent profits after incorporating this indicator into their trading system.
Overall, Forex Equilibrium seems to have a respectable performance record based on backtesting and user reviews. As with any indicator, profitable trading requires sound risk and money management.
Benefits of Using Forex Equilibrium
Here are some of the main benefits of using Forex Equilibrium for forex trading:
- Simple to use – The indicator provides clear arrows and is easy to interpret even for novice traders. No complex configurations needed.
- Works across currency pairs and timeframes – Can be used on any forex currency pair and across multiple timeframes for flexibility.
- No repainting – Signals do not repaint, so traders can trust the arrows plotted on their charts.
- Profitable signals – Provides high-probability signals with good risk-reward ratios, leading to profitable trades.
- Saves time – Automated signals identify trading opportunities so less time needed for market analysis.
- Optimizes entries and exits – Signals provide optimal points to enter and exit trades. Removes guesswork for traders.
- Affordable – Reasonably priced at $147 with possibility of recouping the cost within a few winning trades.
While Forex Equilibrium has several advantages, there are some limitations to consider as well:
- Over-optimization – Backtest results may be over-optimized and not translate accurately to live trading.
- Requires monitoring – Needs active monitoring for best results. Not suitable for set and forget trading.
- Increased trading frequency – Signals may increase trading frequency beyond a trader’s comfort level.
- Works best with risk management – Proper risk management essential to maximize profitability.
- Locked to one device – License only allows use on one MT4 account at a time. Cannot be transferred between devices.
- No free trial – No free demo or trial version available to test before purchasing.
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Who Is Forex Equilibrium For?
Forex Equilibrium can appeal to a range of forex traders:
- Beginners – User-friendly interface and simple signals ideal for beginner traders.
- Lazy traders – Provides trade signals so less time needed for market analysis.
- Scalpers – Signals across multiple lower timeframes suitable for scalpers and day traders.
- Swing traders – Higher timeframe signals provide swing trading opportunities.
- News traders – Signals may help news traders confirm breakouts and enter at optimal points.
- System traders – Can be incorporated into existing trading systems for additional confirmation.
Customer Support and Guarantee
Forex Equilibrium comes with a 60-day money back guarantee. If users are not satisfied, they can request a full refund within 60 days of purchase. All requests need to be sent to the Clickbank support team.
Support is provided via email only. The developer does not seem to have any dedicated support team or infrastructure. Users have complained about slow and templated responses to support queries.
Considering the lack of support channels, the refund policy provides some recourse if the indicator does not perform as expected for a trader.
Final Verdict – Worth Trying with Refund Policy as Backup
In summary, Forex Equilibrium is a simplistic yet potentially useful indicator for forex traders. The entry and exit signals can identify high-probability trades across various currency pairs and timeframes. It performs well in backtests and has received positive feedback from users.
The biggest drawback is the lack of long-term live results and dependence on backtest data. There is also minimal support provided outside of the 60-day refund policy.
For traders looking for a simple indicator solution, Forex Equilibrium is worth trying out given the refund policy backup. As with any indicator, use proper risk management and reasonable expectations. Use the refund policy if it does not align with your trading style or expectations.
Overall, Forex Equilibrium scores points for simplicity and performance but loses some for lack of transparency and support. The refund policy helps mitigate the risks in trying out this indicator.