The objective of this post is, yet again, to review another system suggested by one of my website visitors. In fact, several people have come to show an interest on this system. The expert advisor I am talking about right now is the Forex Derivative Expert Advisor. This ea has caught several people's attention because of it's supposedly mathematically advanced trading system that changes according to different market conditions and allows the system to adapt as the market changes.
When you enter the website, the first impression you get is that this expert advisor will turn out to be just ike all the other commercial expert advisors out there. The website is filled with the usual, hype, commentary and testimonials commercial expert advisors of this type usually have. The website goes on and on about how the creator managed to put all his trading strategies into a single trading system, yatta, yatta. Truth be told, I am no longer interested in how the expert advisor creators were able to develop their systems, I am interested in conclusive proof about the expert's profitability and for sure, I am very interested in accurate descriptions of their trading methods.
Now, as far as evidence goes, the forex derivative expert advisor is no surprise. The website has the usual backtesting with an almost 2 month old "live" testing statement shown on their website. In my opinion, no live teting results can be trusted unless one has access to the account via an investor read only password. Why ? Because results can be manipulated and not be the result of mere automated trading, if we can get access to the account we can in fact verify that all trades are performed by the automated trading system. We can also verify that the expert adviosr is being run 24/7 and that the statement on the website is not simply removed when the ea wipes an account.
The trading strategy also seems to have quiet a few problems. The system has a risk to reward ratio which is almost 4:1 that is, you require almost 4 wins to recover from one single losing trade. Most trading systems with such unfavorable risk to reward ratios usually lose money in the forex market. The fact that the live account is also trading several currencies also makes it incomparable with the backtesting statement shown on the website. For the sake of consistency, the creators of the ea should have traded the ea with exactly the same parameters as the backtest, on a single currency pair.
Who knows if the forex derivative expert advisor really has all the market adapting features it says on their website. Up until now, they lack any testing information that may make their expert advisor's claims acceptable. They claim the ea is able to adapt to changing market conditions but they barely have 2 months of live testing. Are you kidding me ? One thing is to program something you think makes the expert adapt to several market conditions and another thing is that it in fact does it. If a system has not been traded live for a period of at least a year it is very hard to say that it can "trade all market conditions" even so, I would not dare say that about a trading system until I have at least 2 or even more, 10 years of live testing.
For the reasons said above, the forex derivative expert advisor is NOT worth buying because the authors do NOT have enough testing information as to backup their claims. If they ever have more than one year of live testing I will rewrite this review with new comments on the system. If you would like to learn more about other commercial and free expert advisors please consider buying my ebook on automated trading or subscribing to my weekly newsletter to receive updates and check the live and demo accounts I am running with several expert advisors. I hope you enjoyed the article !
When you enter the website, the first impression you get is that this expert advisor will turn out to be just ike all the other commercial expert advisors out there. The website is filled with the usual, hype, commentary and testimonials commercial expert advisors of this type usually have. The website goes on and on about how the creator managed to put all his trading strategies into a single trading system, yatta, yatta. Truth be told, I am no longer interested in how the expert advisor creators were able to develop their systems, I am interested in conclusive proof about the expert's profitability and for sure, I am very interested in accurate descriptions of their trading methods.
Now, as far as evidence goes, the forex derivative expert advisor is no surprise. The website has the usual backtesting with an almost 2 month old "live" testing statement shown on their website. In my opinion, no live teting results can be trusted unless one has access to the account via an investor read only password. Why ? Because results can be manipulated and not be the result of mere automated trading, if we can get access to the account we can in fact verify that all trades are performed by the automated trading system. We can also verify that the expert adviosr is being run 24/7 and that the statement on the website is not simply removed when the ea wipes an account.
The trading strategy also seems to have quiet a few problems. The system has a risk to reward ratio which is almost 4:1 that is, you require almost 4 wins to recover from one single losing trade. Most trading systems with such unfavorable risk to reward ratios usually lose money in the forex market. The fact that the live account is also trading several currencies also makes it incomparable with the backtesting statement shown on the website. For the sake of consistency, the creators of the ea should have traded the ea with exactly the same parameters as the backtest, on a single currency pair.
Who knows if the forex derivative expert advisor really has all the market adapting features it says on their website. Up until now, they lack any testing information that may make their expert advisor's claims acceptable. They claim the ea is able to adapt to changing market conditions but they barely have 2 months of live testing. Are you kidding me ? One thing is to program something you think makes the expert adapt to several market conditions and another thing is that it in fact does it. If a system has not been traded live for a period of at least a year it is very hard to say that it can "trade all market conditions" even so, I would not dare say that about a trading system until I have at least 2 or even more, 10 years of live testing.
For the reasons said above, the forex derivative expert advisor is NOT worth buying because the authors do NOT have enough testing information as to backup their claims. If they ever have more than one year of live testing I will rewrite this review with new comments on the system. If you would like to learn more about other commercial and free expert advisors please consider buying my ebook on automated trading or subscribing to my weekly newsletter to receive updates and check the live and demo accounts I am running with several expert advisors. I hope you enjoyed the article !
Posts
No comments:
Post a Comment