FAP Turbo and MarketClub: two entirely different approaches

At the outset, its important to recognize that FAP Turbo and MarketClub are apples and oranges.  Both rely on some aspect of technical analysis to generate trade signals, but in many important aspects they are entirely different.   Its also important to know that I’m an affiliate of both, and a heavy user of MarketClub.  Both are good products.  Choosing the right one will depend a lot on the timeframe you want to trade, the degree of automation you require, and which instruments you want to focus on.

FAP Turbo

What is FAP Turbo?

FAP Turbo is a forex robot, or autotrading program.  Technically, its a script called an Expert Advisor for the MetaTrader 4 platform.  That means you’ll need a forex broker that works with MetaTrader.  Fortunately, most of the best forex traders offer MetaTrader as an option.  The two spot forex brokers I have used, FXCM and MB Trading, each offer MetaTrader accounts.

Advantages of FAP Turbo:

  • actual track record: FAP Turbo doesn’t rely on curve-fitted backtests.  According to the FAP webpage, its actually traded in three live currency accounts, and has made money in all three.  The founders don’t disclose the exact settings they use to achieve these results, but here are some tips on FAP Turbo settings.
  • trading is automatic: if you want a system that will pull the trigger for you, FAP Turbo fits the bill.  With a compatible MetaTrader 4 brokerage, FAP Turbo will execute the trade signals automatically.  It really is a trade “robot.”
  • settings can be tweaked: FAP Turbo has dozens of settings that can be altered, and most FAP Turbo experts believe that getting the settings right is the key to success.
  • money-back guarantee:  FAP Turbo is only $149, and offers a 60-day money-back guarantee.

Disadvantages of FAP Turbo

  • advertised results can be hard to replicate: FAP Turbo doesn’t tell you the settings used to generate the returns it advertises, so you need to figure out the settings on your own.
  • limited to MetaTrader 4 brokers: not all forex brokers support FAP Turbo.   MetaTrader compatibility is absolutely required, with one exception: FAP is bringing out a custom product with Swiss broker Dukascopy that will be  standalone, called FAP Evolution.
  • requires keeping a computer on or using a VPS: as an autotrading program, FAP Turbo needs to be on to monitor the market and execute trades.  Consider whether you want to dedicate a computer for that function.  If not, some brokers and third parties host Expert Advisors (usually for a fee) on Virtual Private Servers.
  • not appropriate for all currency pairs:  FAP Turbo is tuned and created to trade a limited set of currency pairs: EURGBP, EURCHF, USDCAD, and CHFGBP.  One drawback is that if other currency crosses offer favorable trading opportunities, FAP Turbo might not be primed to take advantage.
  • limited use for longer-term traders: FAP Turbo offers normal and scalper mode, but both are focused on daytraders.  If you are looking to capture longer-term moves in forex markets, FAP Turbo is not the tool to use.
  • crowding effect:  With so many FAP Turbo users following the same signals on the same few instruments, there is a possibility that the trades could get crowded, leading to increased slippage in entries and exits.  FAP Turbo has some mechanisms designed to reduce the effect, but at some point it can become a concern, especially in less liquid crosses like CHFGBP.

MarketClub for Forex

Advantages of MarketClub:

  • easy to interpret: MarketClub signals trend strength in multiple, longer-term timeframes using a simple, on-chart indicator called a “trade triangle.”  The green up triangle signals strength, the red down triangle weakness.  For forex, MarketClub recommends that traders use the weekly signal to define trend and the daily to define entries and exits.
  • works on a longer term: perhaps more than any other instrument, currencies tend to trend well over long periods of time.  Focusing on an intraday or scalper strategy means turning your back on these prime opportunities.
  • signals available for hundreds of currency pairs: if you can think of two currencies, MarketClub can provide signals for the currency pair.  All of the currencies covered by FAP Turbo are available, as are the traditional pairs like USDJPY, EURUSD, NZDUSD, AUDUSD, GBPUSD, EURJPY, etc.  So are the more unconventional crosses, like EURNOK, USDINR, GBPSEK, or USDMXN.  And if you really want to get obscure and trade Saudi currency or Korean Won or Malaysian Ringitt — or even Lithuanian Litas — MarketClub can do the job.
  • scanner and smart alerts included: you don’t have to decide in advance which currency you want to trade. MarketClub’s smart scanner will scan the whole breadth of pairs to find the best trenders using a gaggle of technical criteria, and send alerts to you.  Why fight for a few pips on a congested instrument when you can identify a long-term trender?
  • stock and futures signals included at the same price: for the price of admission you get the same trend analysis, scanners, alerts, historical prices, and other trading tools for tens of thousands of stocks — US and international — all US futures, and many other instruments.  Its a key tool that I use every day.
  • trades are not crowded: because the signals are available for literally thousands of instruments, and are longer-term in nature, MarketClub is not susceptible to the same “crowding out” phenomena on currency pairs.
  • does not require a special broker or equipment: MarketClub is accessible from any internet browser.  It does not require MetaTrader 4.  Because you, and not the computer, executes the trade, MarketClub can be used in conjunction with every forex broker.
  • more control:  control freak?  Many of us are just not comfortable with fallible computers handling all aspects of trade execution.  I prefer signals to a fully automatic trade robot.  If you do too, MarketClub may be a better product for you.

Disadvantages of MarketClub

  • not fully automatic: on the other hand, if you want the computer to pull the trigger, MarketClub is not your tool.  MarketClub does not execute trades.  It only gives signals, that you will need to convey to your broker.
  • limited intraday tools: MarketClub does give daily signals in real time, but it doesn’t give signals on smaller time frames.  So if you want to trade intraday, look at FAP Turbo.
  • trend only: short, intraday scalps are inherently countertrend trades.  MarketClub is trend-following.  I believe that’s a superior approach but if you want to try a countertrend approach, MarketClub is not a suitable tool.

DISCLOSURE: Affiiate for both, daily user of MarketClub.