Saturday, August 8, 2009

Forex Expert Advisors : Ivybot an unbiased review

Isn't there always something cooking in the forex automated trading kitchen ? Yesterday I received yet another spam email from the ivybot expert advisor website so I decided to check what all the hype was about and take a deep long look at their website and trading system. Well, I have to say this is, with no surprise, another extremely hyped website of a new forex automated trading expert advisor. This website is obviously targeted at new traders, showing profit targets which are absolutely unreal and which would require absurd market exposure to be realized in the real market.

First of all, let's take a long hard look at what they are telling us and lets make a decision of whether it is or it is not worth buying and putting to the test. The first think I noticed on their website were these absurd profit targets which aim for 500% or even higher profit targets in under a month Are you crazy ? Who would, in their right mind, use a trading system that would put their capital at the risk necessary to realize such an absurd profit targe ? This profit targets are WAY too far from being realistic.

Second, lets take a look at the evidence they show us. No investor access to trading accounts, no record of the time it took to generate each one of the live results, no statements, I mean, come on, they could have simply created all the stuff and you would have no idea they did. In order for testing to be believable and to give us an idea about how a system works and trades we need to have at least trading statements of some sort. The results they showed could have been achieved in a single month ! Many MANY trading systems show short term results but then burst your account in the long run due to their unsound trading techniques.

From the backtesting and the equity curves I can say this looks like yet another expert advisor with extremely high risk to reward ratios that is geared to take small profits from the market with a huge risk to your capital. I mean, this seems to be the case from the straight equity lines but since I have no statements to see if it is really the case, I cannot say very much about it.

I really have to say that I would NEVER get this trading system for the reasons outlined above. The creator would have to give us WAY better testing information with live account statements with investor access that have a direct comparison to 10 year long backtseting results. It would be unwise to get this trading system as evidence that backs up their claims is pretty much non existant plus the actual veracity of the information shown cannot be confirmed.

If you would like to learn more about the characteristics of long term profitable trading systems and why most of these commercial expert advisors fail (and why many people are inclined to buy them besides this !) 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 this article !

2 comments:

fred said...

i know we can always rely on you to safe us from the "bad eggs"
thanks ones more.
(just to let you know am the guy that couldnt buy your e-book using plimus)
my regards

Jerome said...

This is the first sensible review I've read on Ivybot, no one is saying its working for them consistently but everyone wants to sell it to you this week then the next new one next week.

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