FOREX REVIEWS

This is the first review I will be writing for the Pointbreak expert advisor built for the metatrader 4 platform. As you know, I started to test this expert advisor a week ago as a personal request from the maker. I am always skeptical with new expert advisors (anyone who has been into them for a while would!) but Pointbreak has been like a glimpse of light at the end of the tunnel. Many expert advisor makers are always talking a lot about their expert's amazing profits, low draw downs, etc. They in fact talk the talk, but 99% of them do not walk the walk. As I have told you many times, they are based on unreal assumptions. Pointbreak has surprised me, challenging some of my core beliefs. Pointbreak does not use a fixed stoploss, it is thus subject to massive drawdown. This, unlike other experts, is hedged with the fact that this expert uses amazing money management, being very conservative while it trades. This also shines against the fact that it is one of the most aggressive exp...

Okay, it has now been a month for my first free expert advisor portfolio and three weeks for the second expert advisor portfolio. In case you do not remember or haven't read my previous posts, the first portfolio is mainly centered around the GBP/USD pair while the second portfolio is distributed over a variety of currencies. The first portfolio contains some interesting short and long term experts such as phoenix and binario as well as the second one which has, for example, an ADXcross expert and an MAcross expert. (Please see previous posts for more information) What can I say now ? This week has been completely devastating for both expert portfolios. Both of them have had massive draw downs, in the order of 40-50%. Hence, I will forward test them for another week, If I do not see substantial recovery I will eliminate them from my vps as they are well over my acceptable risk:reward ratio. This shows that the results shown on earnforex.com for the expert advisors are NOT accurate...

When people star trading the foreign exchange market one of the first things they are told is that if they intend to be profitable they have to find a trading system . By a system, people usually mean a simple or complex set of predefined rules which determine market entry points, exit points, lot sizes and such. Well, this is one of the first things that turns 90% of forex traders into losers . Most traders hear this and immediately start their search for the so called "system". They start to learn about indicators, they start to dream about holy grails, they are confused. They start to build systems from scratch, they start to try other people's systems but they are never told that a simple system just won't do it. The main reason why a professional forex trader is much better at trading than any expert advisor (feel free to debate this if you know an ea that can make 100% profit each month consistently) is because humans have a magical thing called discretion . ...

Last week I was very kindly approached by the PointBreak expert advisor creator who asked me if I could forward test his product on my virtual private server and write a review about it. As I am always looking for a new profitable expert advisor I gladly agreed to test his PointBreak5 expert advisor . I am doing this with no monetary compensation at all, neither directly or from affiliate sales. This assures that my results will be totally unbiased. At first glance, PointBreak seems to fulfill the requirements I would assign to a profitable expert advisor. It's goals also seem to be pretty doable with a long term profit target in sight . I have started to forward test this ea as of today, using the most conservative setting as outlined in the expert advisor's demo documentation. I am using an Alpari 25,000 demo account with 1:100 leverage. This expert advisor will be commented based on it's weekly results, as my free expert advisor portfolios. Let us wait then, the surpris...

It has been a bumpy week for the second expert advisor portfolio I am testing. The experts have suffered some losses and some wins, leaving their track record close to the initial starting capital. As you can see on the statement here , the expert advisor portfolio has made it close to 10200, which is a modest 2% profit . This also in conjunction with a maximum draw down close to 12% which is a decent amount for a portfolio of this sort. The most active expert advisor has been Ichimoku5 , with fxovereasy being the most inactive and the UniversalMAcross and ADXCross advisors hedging Ichimoku5 for a good percentage of the time. I have also noticed that whenever the market is very rangy the expert advisors hedge each other a lot while they don't in trending markets (in which they both run profitable positions). It should be interesting to see how both portfolios evolve with time. Up until now, both of them are profitable.

For some of the people reading this post, the title must be a shock. Technical indicators do not work ? But almost all trading systems are based on indicators ? right ? Well... Yes and no. Many trading systems are based on indicators and yes, some of these systems may well be giving profit, but, is it truly because of the indicators ? What does an indicator tell you ? Technical indicators are just graphical aids which are simply generated through pretty simple (or rather complicate) arithmetic operations on the information you already know. Yes, simply the information that is already there, in front of you, in every candlestick. I mean, I could make an indicator that took the closing price, added it to the opening price, divided it by 200, added 20 and then (to make it more complicated !) divide by 10% of the previous bar. This indicator, which I will call Magic, would give us a fancy line, we could change some numbers, it would give as another line. We could observe what Magic does, ...

When I started trading forex, one of the first things I was introduced to was day trading. As you know, day trading is the art of opening up positions that last for less than a day and end up with a profit. The reason I write this article is to talk to you about some of the myths, misconceptions and truths surrounding day trading and finally, why day trading is not a positive way to start for a forex newbie. First I would like to address some of the myths that revolve around day trading. Day trading is not profitable because intraday market movements are random and chaotic - This is an absolute myth. It evolved because intraday movements seem random and chaotic, which does not mean they are. The thing is that movements that occur within smaller timeframes seem more volatile (hence chaotic) than movements that occur in larger timeframes which seem to adapt better to fundamental analysis. But, you can always see in smaller timeframes (60 min vs 1 day) what you see in bigger ones, you se...