A few weeks ago a newsletter subscriber asked me to review the Forex Godfather expert advisor. Today's post will be focused on the evaluation of this expert advisor and the evaluation of the claims made by the authors against the evidence provided by them for the forex godfather's actual trading. By looking at the expert's website and evidence I will then analyze the experts probablity of being long term profitable and tell you if I consider it worth buying and testing or if it is, as most expert advisors out there, another overrated EA which does not have enough merit as to be considered worth the try.
To begin with , the forex godfather website makes a terribly bold claim about making 91,418 USD and holding every trade "for ransom". Terrible claims made by a terribly evaluated EA with the mere intention of selling it to unweary and inexperienced traders who believe this claims to be possible with 100 USD initial investment. As with many other experts, no hint of the initial balance is given on the claim, a very misleading tactic to make people think that they can achieve this profit with whatever initial investment. When we look at the evidence of profitability, it is extremely disappointing. What we see is a backtest coupled with a few charts and pictures of "live" testing statements.
Now, you cannot trust positive backtesting results from an EA seller for several reasons. The first one is that the EA might exploit problems with the backtester (like using information from the future, one minute interpolation, etc) for this reason we always need live/backtesting consistency to be proven. This guy does not show even one live testing statement that shows the expert's results so that we may compare them to backtesting. Oh wait, we don't have any backtesting statements either. Whats up with this guy ? When people are selling and EA, if they are really providing a profitable system in good faith they should provide download links to all of the evidence available. Why is backtesting done only from 2004 ? Why isn't it done from 1999 if there is data available to do so ? Why is there no live test from December 2008 if the "live" statement screenshot is from them. If the system is really profitable why isn't then a live testing statement showing this to be the case ? These questions really answer themselves.
In my opinion, this EA is probably based on a simple strategy, like a moving average cross or similar which has been curve fitted to show the backtesting statement you see on the website, why not from 1999 ? why no live testing statement if the screenshot is from Dec/2008 ? Simple, this expert is probably not long term profitable and the author does not want to show information that may be prejudicial to his sales. How unethical.
Of course, I consider this system NOT worth buying or testing as the author does not provide any valid evidence for his claims. Moreover, the EA seller seems to be hiding evidence that should be easily available, as the live testing statement from 2008 and the backtesting statement so that we can truly evaluate the system. Of course, profitable systems do exist and can be traded for realistic profit and draw down targets in the forex market. If you would like to learn more 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 !
To begin with , the forex godfather website makes a terribly bold claim about making 91,418 USD and holding every trade "for ransom". Terrible claims made by a terribly evaluated EA with the mere intention of selling it to unweary and inexperienced traders who believe this claims to be possible with 100 USD initial investment. As with many other experts, no hint of the initial balance is given on the claim, a very misleading tactic to make people think that they can achieve this profit with whatever initial investment. When we look at the evidence of profitability, it is extremely disappointing. What we see is a backtest coupled with a few charts and pictures of "live" testing statements.
Now, you cannot trust positive backtesting results from an EA seller for several reasons. The first one is that the EA might exploit problems with the backtester (like using information from the future, one minute interpolation, etc) for this reason we always need live/backtesting consistency to be proven. This guy does not show even one live testing statement that shows the expert's results so that we may compare them to backtesting. Oh wait, we don't have any backtesting statements either. Whats up with this guy ? When people are selling and EA, if they are really providing a profitable system in good faith they should provide download links to all of the evidence available. Why is backtesting done only from 2004 ? Why isn't it done from 1999 if there is data available to do so ? Why is there no live test from December 2008 if the "live" statement screenshot is from them. If the system is really profitable why isn't then a live testing statement showing this to be the case ? These questions really answer themselves.
In my opinion, this EA is probably based on a simple strategy, like a moving average cross or similar which has been curve fitted to show the backtesting statement you see on the website, why not from 1999 ? why no live testing statement if the screenshot is from Dec/2008 ? Simple, this expert is probably not long term profitable and the author does not want to show information that may be prejudicial to his sales. How unethical.
Of course, I consider this system NOT worth buying or testing as the author does not provide any valid evidence for his claims. Moreover, the EA seller seems to be hiding evidence that should be easily available, as the live testing statement from 2008 and the backtesting statement so that we can truly evaluate the system. Of course, profitable systems do exist and can be traded for realistic profit and draw down targets in the forex market. If you would like to learn more 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 !
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