FOREX REVIEWS

Many people start to enter the world of metatrader forex automated trading and think that it can all be done from their home computer. That is very wrong ! One of the main reasons why automated systems fail for new traders is that they try to use them on their home computers. The reasons why this does not work are very simple. An expert advisor needs to run in an absolutely ideal environment. That is, a computer that has redundant power, internet connection, no viruses etc. When you run your expert advisors inside your home computer, you are exposed to black outs, internet disconnections and viruses brought from your day to day activities. An expert advisor is not meant to be run while a browser and an mp3 player application are running, an expert is decided to run by itself with enough memory and cpu power available in order for it to do it's trading appropriately. So what is the solution to these problems ? A VPS ! A virtual private server, is a computer that is held inside a dat...

Today I decided to write a review about an ea that has been around for a while and has attracted the attention of many forex traders. The expert advisor I am talking about is the Bogie-NN-8v advisor developed by William Boatright. This ea is said to be neural network based and has managed to get profits in excess of 50% on some months. Well, first of all, let me tell you, in my opinion, what Bogie is and what Bogie is not. Bogie is an automated trading system based on an indicator developed using a neural network approach, Bogie is not a neural network. What does this mean ? A neural network is supposed to optimize itself continously, that means, with each new tick, the expert should reevaluate and reoptimize itself to better adapt to current market conditions. A neural network, in analogy to your brain, should be able to "learn" from past experiences and therefore increase it's possibilities of trading the market profitably. Bogie does not do this, the expert advisor doe...

In general, scalping is a trading technique which tries to exit trades with very small profits, risking several times the amount won in order to augment the trader's probability of success. Scalping is a trading technique discouraged by many brokers because these small fluctuations in market prices (3-4 pips), can be predicted by someone with a direct bank feed and used with an advantage against the broker. This can be done due to the delay that brokers have when processing data streams (which can be 2-5 seconds). However, in the world of automated trading, an expert advisor is usually called "scalping" even if it's take profit is more than 3 times the spread (which would not be considered scalping by most brokers). Examples of such expert advisors are Shark and Viseu which have small profit targets (8-10 pips) with stop loss orders in excess of 30 pips. As with every trading strategy, there are some advantages and disadvantages to using such experts. For example, the...

A small while ago there was a lot of hype about this new expert advisor called P.I.D SP4. People were getting mass returns on this expert advisor and so many more people began to converge on this ea and start to trade their capital using the expert. I have to say, I warned them ! Expert advisors that offer mass returns on some months are very or more exactly extremely prone to lose all their money and even more. As I have said on an earlier post, in my experience, profitable consistent expert advisors seem to have at least a 30-40% draw down of every 10% consistent profit they get on the account. This is simply the balance demanded by the market and the reason why top fund managers almost never get more than 20% profits a year, they are extremely conservative because they know the inherent risk that comes with high profitability. I never traded P.I.D myself but saw it trading on many friend's accounts. The results were just like I expected, this correlation based ea found a point o...

I have given the subject of "why people lose so much money in forex" a lot of thought and so I decided to write this small article to show you all my conclusions. We all know it. Ninety five percent of all forex retail traders lose their first trading account. But we all know that doesn't apply to us, right ? We are smarter, we are more intelligent, we have sharper minds... What could possibly go wrong ? Everything ! Have you ever considered what the average forex trader is like ? Yes, he/she is just like you ! Average forex traders are not stupid people, most of them have some level of higher education and many of them have the will and drive to learn about the market and earn an income by trading the foreign exchange. The why do most of them (with a high probability of you being included here) lose money ? The answer is a mixture of things. I have found that new traders are mainly impatient, draw down intolerant and emotional. This of course, are some really big red sig...

For those of you who have not read previous posts about God's Gift, it is a free expert advisor coded by Matt Edmonds which I have been testing from January 2008. I stopped publishing results on this website since the ea is a very infrequent trader and it took it several months to accumulate a good amount of trades. Now I will show you my results for this free, profitable, expert advisor. - - As you can see on the graph, the ea has performed very well for the past 9 months as it has been predicted by it's backtesting. The expert has very good market entries. With about only one entry per week, this ea enters the market only on high probability trades. I have to say, I thought this ea would blow up the account by June but it has indeed surprised me by banking profits as expected. Up until now, the ea has a profit of about 50% with a maximum draw down not exceeding 10%. The ea uses a fixed stop loss and it seems to have a low risk trading style. This is the type of ea you would l...