FOREX REVIEWS

Many people, specially new traders, overestimate the paramount importance money management has on their trading. In fact many strategies can be turned from losing to giving decent returns when adequate money management is applied to them. People tend to think (as I have said on other posts) that the most important factor in forex is the entry, they couldn't be more wrong. Most trading systems are profitable either because of their exits or their money management strategies, both of them give the systems an additional edge over other ones. So, what is exactly money management ? It is simply the adequate control of position sizing inside a strategy to make it more profitable. As you know, there are many ways in which positions can be managed, the traditional approach being to trade a fixed percentage of your account size every time. However, this strategy is not as profitable as people would think because it needs a trading system which is right most of the time and whose exits are v...

Today I decided to write a review about a piece of software called the forex autocash robot. It is a metatrader expert advisor designed to automatically trade the forex market. I have to say, I am repulsed by the way in which this product is shunned upon people on the authors website, it is disgusting that a person can grip such cheesy and unethical marketing tactics in order to convince people to buy a product. But well, the way in which a product is marketed doesn't make it good or bad so now I am going to focus on what the software really is. The expert advisor is a typical scalping ea, with a 6 pip take profit and a 650 stop loss targeted at an audience of not too knowledgeable forex traders. The webpages claims that the product has remained in profit for more than 8 years without a single loss. This claim is not backed up by live or forward testing of any kind and with such a small take profit it is very plausible that, even if this results really showed on a backtest, that t...

I decided to write an article about general forex trading since many people have a completely wrong idea of what is and what is not important when trading forex. A very common newbie and even experienced trader mistake is to think that the most important thing when trading is to enter the market at the right time. You couldn't be any more wrong. In fact, you can enter the market at anytime in a direction predicted by a coin toss and the strategy could be profitable if you know when to exit the market. The most important thing when you are trading and what distinguishes a loser from a winner almost all the time is the ability to exit the market correctly. But, what is to exit the market correctly ? Well, there is a common phrase in forex trading that says, cut your loses, let your profits run, it is exactly that. But we all learn eventually that this is easier said than done, exiting the market requires you or your automated trading strategy to have a very careful plan, there must b...

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...