Wednesday, April 14, 2010

Forex Expert Advisors : Forex Cash Rocket an Unbiased Review

Yesterday I received a message on my website's chat asking me to review another new automated trading system which has just been released. This system, called forex cash rocket, will the subject of today's post. As always I will first look at the expert's website and the evidence provided and see if this evidence is in-line with the author's claims. After this I will analyze the evidence and statements made thoroughly in order to evaluate the like hood of long term profitability and the trading tactics of the system being sold. With all this information in mind I will then be able to give you my honest opinion about whether or not this trading system is worth buying and testing. Is the forex cash rocket capable of demonstrating the high profit levels mentioned on its website ? Keep on reading to find out.

The forex cash robot website is pretty simple, there are not a lot of claims of profitability or a lot of trading evidence but the only information shown about the expert's performance seems to be a "live testing statement" which covers the period from January to March 2010. However there are many problems with the information shown. First of all, there is no investor access verification available so it becomes obvious that the statement shown could be a simple forgery uploaded to a metatrader 4 publishing website or it could just be a result of demo testing and NOT from live testing with real money. The second and worst issue is the fact that the statement has not been updated since March the 22nd something which suggests that the system has gone through a draw down period or has wiped a very large portion of the previously achieved profits.

Talking about the system's trading tactic it doesn't seem to use any obviously unsound techniques such as martingale systems, grid trading, etc. Its risk to reward ratio is also pretty much in line with a regular trading system and its overall risk seems to be quite in line with a moderate risk expectancy. However, there are many things which we don't know since the system lacks any evidence on long term performance. Why isn't there a 10 year backtesting statement included ? Why don't the people at forex cash rocket provide us with evidence to evaluate risk and long term performance ? There are two possible answers to this questions, 1) backtesting results cannot be obtained or 2) backtesting results over a long period show that the system cannot withstand changes in market conditions. Since there is a video where a visual backtest seems to be being shown I am inclined to think that the second statement is the answer to the question.

Many people will get excited at the 3 months of "live results" and they won't realize that a) almost any strategy can get 3 months of profitable results b) there is NO evidence which shows that this is indeed a live statement c) the statement has not been updated for almost a month d) there are no backtesting results to measure risk or compare with live tests.

Overall I have to say that due to the lack of backtesting evidence to measure and validate adaptability against changes in market conditions and long term profitability, the lack of investor access verification on the "live test" and the fact that this test was stopped abruptly without any specific reason I consider the forex cash rocket trading system NOT worth buying and testing. The evidence needed to change this review is quite simple, I just need the author to provide a 10 year backtest coupled with the investor access information of the live account and live-updated result of this same account to confirm that this was just not a case of "it started to lose, therefore we ended the live test". As you see, there is a huge lack of information which leaves BIG doubts about the system's profitability.

If you would like to leanr more about automated trading and how you too can design your own trading systems to become profitable in forex automated trading using realistic profit/risk targets 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 !

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