Thursday, February 11, 2010

Forex Expert Advisors : Forex PipAndroid an Unbiased Review

Today while searching for new expert advisors to review I came across the seemingly new pipandroid forex trading system. On today's post I will write a review about this trading system aiming to address the long term profitability of the system as well as how the claims made on the website are backed up or not by the evidence provided on the expert's website. Within this review you will find my analysis about the evidence provided by the expert's authors as well as my view about the long term profitability of the forex pipandroid trading system.

The pipandroid expert advisor website contains what appears to be a wealth of evidence about the system's profitability. However once you pay close attention to all the information provided you will notice that key information about the expert's profitability is missing and obviously purposefuly hidden.

Lets look at the "live testing" evidence provided by the authors which is supposed to prove the claims of profitability made on the website. What is wrong with this live testing evidence ? Several things. First of all, the "live testing" evidence shown, contrary to what they say is NOT third party verified. The website where these guys are publishing the results is merely a website that publishes files posted on it through an FTP transfer, the website does not verify the authenticity of the account through the use of an investor access password like, for example, myfxbook does. Therefore there is no way in which we can truly know if the accounts shown are real or actually only demo accounts and furthermore, there is no way in which we can even know if they are real. Expert advisor sellers have been known before to alter live trading results to hide loses so we cannot trust any live account information without TRUE account verification through investor access passwords.

Assuming that the accounts are real, we see that the EA is actually trading with a HUGE market exposure and with a very unbalanced level of risk. Why are USD/JPY positions only 1/10th the size of GBP/USD positions ? Each losing trade on the GBP/USD is equal to about 10% of the trading account. Who in the world can trade peacefully with a 10% risk per trade ! If the results shown on the website are indeed from a live account it is evident that they have picked exceedingly risky trading levels to reach those results.

They will also lead you to believe that the backtesting results shown below are "indicative" of the experts performance. Well, there are several problems with the backtest shown. First of all, only a single backtest of an unkown currency pair and time period is shown while the live trading of the EA taken place on several different currency pairs. If they would really want us to have an indicative of profitability from backtesting results then they should : a) provide backtesting results of the past 10 years, b) provide backtesting results of ALL the currency pairs traded by the EA, c) show us separate LIVE ACCOUNTS verified through INVESTOR ACCESS showing back/live testing consistency for a period of at least 6 months so that we can know that back and live tests are comparable.

What we have in the case of the pipandroid trading system is the classic attempt of an expert advisor seller to shove short term profitable results down the buyers throat to sell an expert advisor which simply does not have any evidence for long term profitability. It would be naive to think that the "live results" (if at all real) at VERY high risk of only one or two months would be indicative of the live performance of a system in 10 or 20 years. The fact is that backtesting information is not being shown, live tests are too short and they are done with great risk to the trader's account. Definitely everything is geared up to show you a picture that there is simply not enough evidence to backup.

From all the above I would have to say that the pipandroid trading system is definitely NOT worth buying or testing. We would need to see much longer live tests with 10 year long backtests for each currency pair traded with the EA (those which have enough data available) to have any substantial possibility to consider this EA long term profitable. Meanwhile, it is only another EA trade with exceedingly risky settings to show short term profitable results with little to no evidence of long term profitability.

If you would like to learn more about automated trading systems and how I plan to achieve long term profitability in automated trading please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

No comments:

Daniel Fernandez's Expert Author Email Alerts
Sign up to receive email alerts of Daniel Fernandez’s latest articles from!

Email Address: