A Review of Kool-Retracer EA

In this article, we review the Kool-Retracer, a relatively new forex robot designed to help traders execute retracement trades. The Kool-Retracer has just been commercially released and traders can access this EA on www.kool-retracer.com as from July 20. Let us now talk about how the EA works. The retail price for the Kool-Retracer EA is $200, and it is available from the stable of Mycrorafele Associates.

Features

Retracements are a regular feature of the market. There will be times when traders who have taken early positions in assets will want to take profits, and when this happens, there will be more traders unwinding positions in an asset than taking positions, causing prices to retreat. However, when prices have retreated to levels where traders consider them relatively cheap to reacquire, there will be resumed interest in the asset and more net buying, leading to resurgence in the price of the asset.

There are situations when this occurs. This phenomenon occurs in news trades, when there is an initial spike, followed by a retracement and then a renewed surge in the initial direction. It also occurs normally in the normal course of trading. The difference between these two situations is that the news trades play out a lot faster, usually in a matter of seconds.

Retracements always occur; this is an established fact. But at what point does a trader re-enter the trade after a retracement so as not to get caught out by a continued retracement, or not miss the boat when the retracement is truly over? This is the question that the Kool-Retracer seeks to resolve.

The Kool-Retracer works by first identifying the trend. Once it does this, it will search the price action and use a combination of indicators to indicate exactly when the retracement is truly over so as to alert the trader to a re-entry (the semi-automatic mode) or make the entry for the trader (automatic mode). The forex robot also incorporates a fully functional risk management strategy. It looks at the trader’s capital, determines the risk – reward ratio for the trade, and executes the trade with just the appropriate lot size that conforms to 5% risk for the trade. The EA is optimized for the daily chart.

The Kool-Retracer is presently designed for the MT4 platform, though other versions for other platform types will soon hit the market.

Trading Results

Trading results are very promising. Due to the fact that the forex robot works only on the daily chart, it is able to pick out trading signals that lead to large profits. A typical trade taken by this EA takes some days or even weeks to fully play out, so it requires a lot of patience on the part of the trader. However, the end result justifies the wait.

Conclusion

The Kool-Retracer EA hardly makes any loss because of the strategy it works with. It is not a forex robot that generates signals frequently. Sometimes, a trader may have to wait for days or even weeks for a signal to be generated, and also wait for the trade to get into profit territory. Traders using this forex robot cannot use this strategy on any account below $1000. If the trader has to trade with an account size of less than $5000, the forex account must have a facility to trade micro – lots to absorb any drawdowns that will occur from this trade. The daily chart is a long term chart and so stops may be as much as 300 pips. Only large accounts can handle this degree of trading using the risk management profile set out by this forex robot. Anything smaller will mean that the trader will have to tighten stops or subject the account to more risk, which is not recommended.