In this post I will be reviewing the Inertia Trader automated forex trading system for the MetaTrader 4 trading platform. This forex robot can be used by any level of trader and is easy to get setup and running on the MetaTrader 4 trading platform in just a few minutes. The developer talks about his back story and how trading other assets eventually let him into forex and that this is the system he developed.
Inertia Trader Trading Strategy
The Inertia Trader strategy is based on the top performing system of 10 original ideas tested by the developer. It aims to “exploit the concept of price inertia, which means it completely focuses on the physical properties of price momentum.” It will closely monitor the charts in anticipation of quick movements. When such movements occur, it will then determine if it is likely to continue by conducting a detailed technical analysis and entering the trade should it be considered high probability according to a combination of determining factors.
This could be a solid strategy when you consider it is momentum that moves the market and getting on the right side of the market is half the battle – with money management also being of primary importance.
The Inertia Trader trading strategy does not repaint and works based on closing prices only. There are no grids, hedging strategies, martingale money management or arbitrage. It also has a built in maximum spread and slippage filter.
Inertia Trader Back Testing
There is a very interesting back test on the Inertia Trader website. It is on the EURUSD 5 minute chart going all the way back to 2004. It has 99% modelling quality which one would assume means tick data was being used. However, I have never come across tick data prior to 2007 so would like to know how this was possible, if at all.
Inertia Trader Live Results
Inertia Trader Summary
Overall, Inertia Trader is a very interesting concept that uses a unique entry based on market momentum. It is not an aggressive trading system. It comes with full support and a money back guarantee.