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Forex Autopilot Performance Update #2
By alan | March 2, 2008
*Click here to read my concluding review of this product - May 27, 2008*
*THIS POST IS OLD and the robots reviwed are no longer available - See this post for a review of the latest version of the Forex Autopilot Robot (yes there is now only ONE)*
Good day folks. This is a continuation of my last Forex Autopilot performance update available over here. I completed testing the “ProfitStream” robot on the GBP/USD pair because, well, basically it blew my account up! However I’ve had much better results with EUR/USD & EUR/GBP but I’m jumping ahead here.
First off let’s start with the robot’s performance on the GBP/USD pair:
Take a look at that equity graph. Doesn’t look too good, right? Exactly. I know exactly what killed the account. I believe two factors contributed to this. The first factor being the massive sell-off of the USD, and the second being the Martingale nature of the ProfitStream robot. What essentially happened is the GBP/USD pair swung against the short positions the robot had opened and upon seeing this it just kept on doubling the lots (how Martingale systems work) until the size of the negative float got so large that it just blew the account to hell. Lesson for you folks should be to very very careful with ANY martingale based trading system or trading robot (aka EA - expert advisor) !! I think also the settings I used weren’t particularly suited for the GBP/USD pair, but I really am not going to test it anymore on this pair - or any pair really. So, on to the next pairs I go.
Click here to download my detailed GBP/USD performance statement (zip file)
Now let’s talk about EUR/USD & EUR/GBP performance:
Now with these two pairs I’ve had substantially better performance. I started with a $3000 demo account and it’s now at $7105. Check out the equity graph below.
By the way this is on a North Finance demo account.
For a detailed statement please click here (zip format)
The profitable settings for the EUR/USD & EUR/GBP pairs are the following:
EUR/USD:
TakeProfit=10
Step=12
Slippage=3
EUR/GBP:
TakeProfit=10
Step=8
Slippage=3
Conclusion:
I will stop testing the ProfitStream advisor and move on to the next one. I will release performance results after about a week or so. To be honest folks, I did not like this first advisor that much. I am not a big fan of martingale systems. I think they are too risky and for the most part what happens in the end is they blow up your account. This ProfitStream advisor can be profitable if tweaked and ran on a pair that does not have a tendency to make big moves and also if the currency pair is not strongly trending. Since it opens a buy and sell position at the same time if for whatever reason the pair moves your biggest position be it short or long it will just open up trades with bigger lot sizes until either the robot will close trades with a massive loss or even worse you get a margin call. So in conclusion it is my opinion that this particular ProfitStream advisor is only for those with a very HIGH risk tolerance and a BIG account size. I’m serious! Don’t even think about running this thing on an account below $10,000 or more. Don’t say I didn’t warn you.
Now time to move on the trading robot #2. Thanks for your attention and happy trading!
Topics: Forex |
March 2nd, 2008 at 2:32 am
[…] Forex Trading Channel | Foreign Exchange Resources wrote an interesting post today onHere’s a quick excerpt Good day folks. This is a continuation of my last Forex Autopilot performance update available over here. I completed testing the “ProfitStream” robot on the GBP/USD pair because, well, basically it blew my account up! However I’ve had much better results with EUR/USD & EUR/GBP but I’m jumping ahead here. First off let’s start with the robot’s performance on the GBP/USD pair: Take a look at that equity graph. Doesn’t look too good, right? Exactly. I know exactly what killed the accoun […]
March 2nd, 2008 at 4:55 am
Hey Alan,
Thanks much!!
Alan is there anyway I can contact you through e-mail or even give you a holler.
Ive been working on using Forex Killer in other markets and I think I’m on to something BIG. Like to share it with you. Can I give you my phone number through an e-mail address? Hope thats cool with you.
I live in Chicago. Are you in the states?
Daniel
March 2nd, 2008 at 8:12 am
Yes Daniel, just click on “About” at the top to find out my e-mail address.
I’m in Canada btw. Not too far away from Chicago.
March 2nd, 2008 at 9:19 am
Hi alan :)
a martingale system only works if you stop the EA everytime you see the market ranging and without so much volatility, you can not expect to gain money with an “automatic” martingale system: you will blow your account!, use it manually too.
Please supervise your account with that Ea and stop it in these conditions ;)
Regards my friend
Jose
March 2nd, 2008 at 3:46 pm
Yes Jose, that is true. Martingale EAs definitely require supervision. If people leave them be in all market conditions they’ll wake up with a 0 account balance. Still though I find martingale systems much too risky simply because you risk getting a margin call when a martingale EA loads up your account with a monster position (large lot size).
June 7th, 2008 at 1:03 am
Hi Alan
Well i feel another way to work this out is to use a demo account and a real account you let the demo account do the findings and give you the signals while you just trade a few lots your self by writing it out and manually putting it in on a real account, anyway i use FXCM to trade real so i just use MT4 to do the demo trading with EA’s and just pass it on to the FXSTATION 2 cause you cant run MT4 twice on a same platform only if you use NF and then trade with a diffrent platform like FXPRO cause north Finance had gone over its membership capacity and are not taking any more new accounts. after studying the ProfitStream trading signals which are the more favorable then you gat it done by minimizing your risk do it manually. Just My opinion cause i have tried it out also so don’t use it on a real account or it will wreck it off.
June 10th, 2008 at 8:44 pm
Martingale based systems are never good, unless you are happy with a significant risk of wipe-out, or happy trading with very low leverage (which reduces the risk of wip-out substantially). The best staking systems use similar stakes (as a percentage of risk capital) for trades of similar risk/reward expectation.
July 9th, 2008 at 10:06 am
Hi Henry. Did you know that FXCM now supports MT4 :)? However, the account minimum is $2000
Liam I don’t think the Forex Autopilot EA is based on the martingale gambling strategy but I can definitely tell you that some of the EAs in the first Forex Autopilot package (the one with the 8 EAs plus NFP Pilot) did work on this principle.
I recommend that people should stay away from martingale systems as they will eventually blow up your account.
July 11th, 2008 at 11:00 am
Hi Great to here you are making money with forex auto pilot.
I can not load the files and are getting absolutely no helpful assistence from them.
Buyers be aware!!!
July 11th, 2008 at 11:30 am
I know Bill, their support is not all that great.
Checkout my forum for free support from me and other forex autopilot users:
http://www.moneyguruforum.com/expert-advisors-metatrader-4/6089-forex-autopilot-system.html
August 22nd, 2008 at 9:21 pm
hii…i lost all my money with forex autopilot today, ie. 22nd august, friday. 4 trades were in loss and just one win. anywayz its a demo account…i think its just another scam system..
August 23rd, 2008 at 12:26 am
Hmm, it may not be fair to call it a scam just cause you lost your account. Did you overleverage your account? There are so many variables as to why you could have had a string of loses. However, admittedly this EA has been doing very badly for me as well. The whole no stop loss thing is beginning to appear to be quite stupid to me. It just holds on to a freaking -700 floating loss.
What appears to me to be a scam is the fact that they label this an “auto” pilot. It by no means work successfully if left alone. It lacks money management - at least it lacks intelligence money management. Holding on to a position until the end of the month comes or the account blows up is no money management at all!
I heard of people using this EA successfully by setting it to trade in one direction only when the re is a major trend in a particular pair.
To be honest I haven’t played around with this as I’m looking for a truly automated system. There is a time to do manual trading, but unfortunately not everyone can sit glued to a PC screen all day.
Anyways, I am seriously pondering stopping the test of this EA and moving on. I’ve purchased another commercial EA that I will put through its paces and write a review, much like I did with FAPS.
In my final Forex Autopilot review post I gave this EA a tentative recommendation. It was making quite a lot of money, but sadly now things have turned around. I don’t really know what to think of it right now. I am thinking the system needs to be adapted a bit to prevailing market conditions.
One thing that I know for sure is that this EA is DANGEROUS if used with high leverage. Don’t get greedy and load it up with large lot sizes! Also I recommend people place a reasonable stop loss of say 400 pips or max 500 just in case (keep in mind that I’m sitting on a -800 pip floating loss! - insane!)
I may have something more to say about this EA later on.