Forex Newsletter – 27 September 2010

Unfortunately today’s newsletter is not all good news like last week. The Fish Robot finally experienced a large loss on one of its adjustment orders and Forex Crescendo experienced a margin call due to a technical error – read more about this below. The good news is that Forex Greenbot continued to perform well despite of the problems that other robots had.

Here are my trading results for the past week:

1. Manual Trading

Unfortunately I have no manual trading results to report this week. At the moment I just can’t find the time to focus on intraday trading, so it looks like I might have to reconsider my initial plans. I’m sure that a number of my subscribers are interested in manual trading, so I’ll think about this and see if I can come up with a suitable solution.

2. Robot Testing in Live Accounts

Note: you can view the live account statements on the Live Testing Page.

Forex Megadroid (Using Alpari UK): Made 1 winning trade and a profit of 2.6% for the week. The overall profit is now at 34.3% after little more than 7 months of live trading. I know this is less than the claims they make on the Megadroid sales page, but it’s still better than 99% of the robots out there.

Fap Turbo (Using Gallant FX and Settings From Fap Turbo Expert Guide): For the moment Fap Turbo is still disabled.

3. Robot Testing in Demo Accounts

Forex Crescendo: There was a bug in the beta version of Crescendo that I was using, which unfortunately caused a number of trades to be closed incorrectly. This bug only affected Alpari UK demo accounts and no live accounts or other brokers were affected. As a result of this I had to restart the test with the commercial version of Crescendo (the one that is going live tomorrow). I had a long discussion with the developer about this and he was really gutted by this unfortunate error that occured a few days before their launch. He assured me that the commercial version was not affected by this problem.

Fish Forex Robot: After 2.5 months of testing I finally experienced the worst case scenario for the Fish Forex robot. On Friday it experienced a losing trade of 35 pips and as usual it opened an “adjustment order” of 3 times the original lotsize to recover this loss. The adjustment order eventually closed with a 200 pip loss and 45% of the account was lost over night. The overall account is now in red figures by -23% and all the good things that we’ve seen about this robot over the past couple of months has been eliminated. The basic strategy of this robot is very profitable, so I’m going to do some backtests with different settings to see if these big losses can be prevented at all.

Forex Greenbot: Made 100 pips last week for a net profit of just over 9%. I’ve only been testing this robot for little over 2 weeks and it has already made a profit of 20% (or 190 pips), so the performance is looking very good so far. I really like the fixed (and fairly narrow) stoploss of this system, because you know that a single trade can never wipe out half your account like we see with so many other forex robots.

Probability EA: Traded 27 times and made a small profit of 0.35% for the week. This robot has made a profit of 2.60% in just over 2 weeks, so it’s still way too early to draw any conclusions, but it’s looking good so far. I have very little information about the strategy that this robot uses, but it seems fairly complex. I’ll contact the developer and see if I can get some more information.

Forex Bulletproof: When I checked by stats this morning I discovered that Forex Bulletproof stopped working last weekend due to some kind of authentication error. I managed to fix this, but unfortunately there are no trades to report on for the past 7 days. This robot clearly uses a Martingale strategy, so for now I’ll advise against buying it until we have see some more results. According to Forex Bulletproof support the Martingale component is limited, but I’m not convinced that the strategy is as low risk as they claim at all.

Forex Supersonic: Completed only 2 trades for the week, but both of them were losers and the result was a net loss of -2.45% for the week. Forex Supersonic has only made 17 trades in the last 6 weeks and it has made an overall loss of -4.33% so far. I’m afraid I’ve seen absolutely nothing exciting about this robot so far so unless things change drastically in the next 2 weeks I’ll be asking for a refund.

4. Robot That I’ve Stopped Testing

Please visit the Live Testing Page for more details on each of the robots that failed the test.