Today I plan to review the forex nuke expert advisor which was suggested by another one of my newsletter subscribers. This post will focus on the analysis of this trading system based on the evidence provided by the authors about its profitability. By using this evidence and my criteria for long term profitability I will then give my criteria of whether or not this expert advisor is worth buying and testing. This review will be as unbiased as it can be as I get no money from the authors or other parties for either good or bad comments about the system.
Let us start from the beginning. The Forex nuke website begins, as most expert advisor websites, with a very bold and unrealistic claim, 10K turned into 450K, and in the lower case letters they say "no hype". Let us yet again, tell our friends at forex nuke and other expert advisor websites that "turning" in simulation is not "turning" in real life. There is clear difference in opening an account with 10K that was turned into 450K than running a simulation on a program in 10 minutes, it is clearly NOT the same thing. It is very misleading to say that you turned 10K into 450K when what you really mean is that a simulation says that potentially 10K would have turned into 450K, however, the inherent limitations in simulation, such as hindsight, make this claims very doubtful.
The people at forex nuke show us an EA with an unfavorable risk to reward ratio of about 1:5 which offers only very limited backtesting results that only cover the last two years. Again, as I have always said, why in the world don't they show us backtests from 1999 if the data is available to do so ? Well, my best guess is that this EA is curve fitted to the 2008-2009 period, hence the very positive results in back testing, while it will probably fail in live trading. Why don't they show any live trading results to validate their baktesting results ? For all we know, they could have just made an EA that traded based on current bar closes or one of the other hundreds of things that can be done to exploit backtesting vulnerabilities. Can we believe a backtest from an EA seller without a live test that validates it ? NO.
So after discarding this very limited backtest and having no additional live or forward testing information what do we have left ? Nothing. Sad to say but the forex nuke is yet another very hyped and probably NOT long term profitable expert advisor which is of course NOT worth buying or testing. These people would have to provide us with far longer backtests (from 2000 to present) and live tests that validate the backtests if they want us to believe ANY of their claims.
If you would like to learn more about how I evaluate expert advisors and what is a reliable and long term profitable system 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 !
Let us start from the beginning. The Forex nuke website begins, as most expert advisor websites, with a very bold and unrealistic claim, 10K turned into 450K, and in the lower case letters they say "no hype". Let us yet again, tell our friends at forex nuke and other expert advisor websites that "turning" in simulation is not "turning" in real life. There is clear difference in opening an account with 10K that was turned into 450K than running a simulation on a program in 10 minutes, it is clearly NOT the same thing. It is very misleading to say that you turned 10K into 450K when what you really mean is that a simulation says that potentially 10K would have turned into 450K, however, the inherent limitations in simulation, such as hindsight, make this claims very doubtful.
The people at forex nuke show us an EA with an unfavorable risk to reward ratio of about 1:5 which offers only very limited backtesting results that only cover the last two years. Again, as I have always said, why in the world don't they show us backtests from 1999 if the data is available to do so ? Well, my best guess is that this EA is curve fitted to the 2008-2009 period, hence the very positive results in back testing, while it will probably fail in live trading. Why don't they show any live trading results to validate their baktesting results ? For all we know, they could have just made an EA that traded based on current bar closes or one of the other hundreds of things that can be done to exploit backtesting vulnerabilities. Can we believe a backtest from an EA seller without a live test that validates it ? NO.
So after discarding this very limited backtest and having no additional live or forward testing information what do we have left ? Nothing. Sad to say but the forex nuke is yet another very hyped and probably NOT long term profitable expert advisor which is of course NOT worth buying or testing. These people would have to provide us with far longer backtests (from 2000 to present) and live tests that validate the backtests if they want us to believe ANY of their claims.
If you would like to learn more about how I evaluate expert advisors and what is a reliable and long term profitable system 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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