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Before I give you the results for last week’s trading, I’d like to mention a new robot that I’m very interested in. It’s called USDBOT and it’s launching tomorrow morning at 9am EST. Like me, I’m sure you have already received a number of promotional emails about it. I promised myself that I won’t buy Forex robots on a whim this year, but there’s a couple of things that I really like about this launch so far..

The first thing I like is the fact that they show real live accounts on the USDBOT Homepage. This is already a good sign to me, because it shows that the creators have faith in their product (provided that the statements are not faked of course). The second thing that I really like is that you can also buy the actual trading strategy that this robot uses and manually trade it if yourself. They don’t advertise this yet, but the creator of the system (Mark Trenton) told me that this will be one of the optional addons when you buy the robot. If this is true then it’s definitely a first..that level of transparency is highly unusual when it comes to Forex robots.

I’ll send another email after I’ve purchased my copy tomorrow, but in the meantime you can get more information about this robot on the USDBOT Homepage.

Here are my trading results for last week.

1. Manual Trading

(Using the Trading in the Buff the method on my live Account at IBFX)

It’s been a tough week for manual trading, mainly because of my own poor decisions and trading mistakes. I seem to have violated every golden rule of trading last week, including over trading, letting my emotions influence my decisions and just plain bad judgment. Just because I was eager to trade I took a number of trades that I shouldn’t have taken and when those didn’t work out I took some more to try and make up for the losses. I ended up wiping out all my profits from previous weeks and my overall manual trading result is now at -10%. The good news is that I’ve learned some valuable lessons in the process and I’m eager to start fresh this week with a new plan of action. I’m still happy that the Trading in the Buff method is very accurate, so I’m not discouraged at all. It’s been a long time since I’ve traded manually and I didn’t expect things to go smooth from the start, so we’ll see how it goes from here.

2. Robot Testing in Live Accounts

I’m still waiting for my tax clearance to go through and will hopefully start my real money testing of Fap Turbo and Forex Megadroid in the 1st week of February.

3. Robot Testing in Demo Accounts

While waiting for my live accounts to be funded, I decided to restart my forward tests of Fap Turbo and Forex Megadroid, just just to see what the current performance is like.The results for last week were as follows:

Forex Megadroid (Using default settings with a RiskLevel of 0.30): Made 2 profitable trades last week for a profit of 2%.

Fap Turbo (Using Settings From Fap Turbo Expert Guide): Made a number of great trades last week, but a stop loss that was hit on USDCAD wiped out most of the profits for the week and the account ended up only 0.5% in profit.

Forex Godfather: Still no trades since I switched it back on 2 weeks ago. I’ll double check my settings, but this is not necessarily a problem, because as we have seen last year, this robot goes after large moves of up to 200 pips.

FX Broker Buster: Placed 8 trades in its first week of testing and closed the week with a loss of 1%. I’m quite impressed with the way this robot trades and I look forward to seeing what the next couple of weeks will deliver.

4. Robots That I’ve Stopped Testing

Please visit the Live Testing Page for more details on each robot that I’ve stopped testing.

1. Manual Trading (Using the Trading in the Buff the method on my live Account at IBFX)

I learned a valuable lesson this week – never ignore the news! On Monday I entered a trade on USDCAD without first checking the Forex calendar and this turned out to be a big mistake. A major announcement affecting CAD was made soon thereafter and the USDCAD price whipsawed all over the place, resulting in a 50 pip loss for me. Luckily I had some good trades the rest of the week and recovered most of those losses. If I had been more careful I could have easily had another 5% week, but because of my own mistakes I ended up making a 1% loss. Despite of the losing week I am still 3.5% in profit after 2 weeks and the 10% profit target is definitely not out of reach. I am still developing my own strategy with this method, but once I have some more experience I will put together a bonus guide with my exact entry and exit strategies etc.

2. Robot Testing in Live Accounts

It’s been a frustrating week for me in this regard. Due to what can only be called a “series of unfortunate events”, I won’t be able to start my real money testing of Fap Turbo and Forex Megadroid before the 1st week of February. The reason for this is simply that it will take 2 weeks to get the tax clearance in place that my bank requires before they will do an overseas wire transfer to fund my accounts. For now I guess I’ll just have to be patient with this.

3. Robot Testing in Demo Accounts

On the demo testing side things didn’t go much better last week, because all my Alpari demo accounts were deactivated for no apparent reason. I’m not sure if this is something they do every new year, but I’ve lost all my demo account statements and had to re-start my robot testing in brand new accounts. So as of today we are starting with a clean slate, which is perhaps not such a bad thing. For the moment, I have Forex Godfather, Fap Turbo and Forex Megadroid running on demo accounts and none of them have made any trades yet.

This week I spent a lot of time researching new robots and after a lot of consideration I have decided to purchase FX Broker Buster. I have had some good feedback about this robot and the results reported by their customers seem to match the live accounts that they display on the FX Broker Buster homepage, so I am interested to see how this one performs. If you have purchased this robot, please let me know how you have found it. I’ll postpone this purchase for a day or so, just in case I receive different information in response to this.

4. New Products

There has been a number of big launches the past week, but the one that really caught my eye was the Powerband Dominator System by Dean Saunders. I’m a fan of Dean’s systems and I know him personally, so I’m always curious when he launches something new. I don’t think I’ll be able to do extensive testing with this system soon, but I had a quick look at it and it definitely looks very good.

5. Robot That I’ve Stopped Testing

Please visit the Live Testing Page for more details on all the robots I have tested so far.

1. Manual Trading

After announcing that I will test both the Trading in the Buff and the Black Dog Forex systems, I soon realized that testing two new systems at the same time can be quite confusing. I really want to keep things as simple as possible, so I decided to start with the Trading in the Buff method (which is the one I’m most excited about) and leave the Black Dog system for a bit later.

For the Trading in the Buff method things were off to quite a good start. I took 2 trades so far and made a profit of 90 pips for the week, resulting in a 4.5% gain for the account. This was in my live account, trading with real money. Both trades worked out exactly as planned, so I’m very happy with the progress so far. I’ve had some questions about how exactly I trade this method, so here are some basic details for those who are interested:

I like to trade the hourly chart and 4 hour charts, because this gives me a couple of good setups every week. Once a valid 1-2-3 formation is formed according to the rules in the course, I wait for price to return to the area where the support/resistance is expected to be and then enter the market. My profit target is the other side of the “black hole” as defined in the e-book and my stop loss is on the other side of the first bar of the 1-2-3 formation. I don’t use a fixed stop loss, but wait for price to actually close below or above these levels before closing a trade with a loss. Please send me an email if you need any more information on this.

2. Robot Testing in Live Accounts

This week I opened two live accounts to begin the real money testing of Fap Turbo and Forex Megadroid. For Fap Turbo I opened an account with Gallant FX (the broker that Rob Casey has a special relationship with) and for Forex Megadroid I opened an account with Alpari UK (where I’ve done most of my Megadroid testing). In order to compare the two robots head-to-head, I’ve decided to fund each account with $500 of starting capital. This is about double than I initially intended to start with, but it’s the minimum that Gallant FX requires and I really wanted to start the two robots with the same amounts.

Both of the accounts have been approved already, but unfortunately it’s a bit of a lengthy process to fund the accounts from where I live (South Africa). It will take another 7-10 days before any live trades can be placed, so please bear with me while I go through all the red tape required by the banks. Hopefully my account will be funded and ready to go by next week. I would be lying if I said that I wasn’t quite excited about this live testing project.

3. Robot Testing in Demo Accounts

Forex Godfather is the only robot that I’m currently testing in demo and since it hasn’t traded yet this year, there isn’t much to report yet. I’ve had a number of requests to test some of the new robots that was recently launched and while I can not test all of them, I will definitely add at least 1 new robot to the testing profile over the coming week. Over the next few days I will sift through all the robots that were released in the last month or so and see if I can find anything that really stands out from the crowd.

4. Robot That I’ve Stopped Testing

Please visit the Live Testing Page for more details on all the robots that I’ve tested in the past.

This is my first post for 2010 and I would like to start by wishing everyone a very happy new year. I hope that I can assist you in your quest to find profitable Forex systems this year and I always welcome your questions or suggestions. I would like to kick off with some detail of my Forex plans for this year:

1. Manual Forex Trading Systems

Many people prefer manual trading over forex robots and because I have had a lot of requests I’ve decide to include some manual systems in my testing. These systems require a lot more time and attention and I can only test one or two at a time, but I’m sure that we can still discover some very profitable strategies this year.

To get started with this I spent the whole of December evaluating a variety of manual Forex systems. I purchased more than 10 manual trading systems, including Forex Rebellion, Forex Pip Snager, the Forex Cobra System, Forex Trading Made EZ, the Fiby Day Trader System, Forex Trading Machine, LMT Forex Formula and many others. After studying each system, I also spent some time back testing it and after many hours of evaluation I ended up with only two, systems that really impressed me: Forex Trading in the Buff and the Black Dog Forex System.

I tested the Trading in the Buff method for 2 weeks over December and was so impressed with the results that I decided to start testing it this week in my LIVE account. The Black Dog system showed very promising results in backtesting and will be tested in a demo account for now. I will start trading with these systems tomorrow morning and report the results on a weekly basis as always.

2. Forex Robots

Another new thing that I would like to introduce this year is live testing on real money accounts. Once a robot consistently performs well in a demo account, I will open a live account with a broker and start testing it with real money. Out of all the robots that I tested in demo accounts last year, Fap Turbo and Forex Megadroid were the only ones that showed consistent results, so for now these will be the only robots that will trade with real money. I will spend the rest of this week setting up live accounts for these and will hopefully be ready for live trading by next week.

Apart from the above two, Forex Godfather is the only other robot from that I am going to continue testing this year. For poor performance and various other reasons, I have eliminated various Forex robots from my testing portfolio by the end of 2009. (Please visit the Live Testing Page for more details on each of these.)

3. Forex Signalling Services

Forex signalling services are somewhat popular and while it is not something I am personally interested in, it is a concept that I receive many questions about and definitely the 3rd piece of the Forex puzzle. These products can have costly monthly subscriptions and I may not be able to afford many of them, but I will definitely investigate this over the next couple of weeks and see how I can evaluate them in a practical manner.

I look forward to sharing my Forex result with you and I hope that 2010 will be a prosperous year for all of us. Please use the subscribe form below this post to receive my weekly newsletter and follow my trading results.