Monday, April 19, 2010

Forex Expert Advisors : FXZapper an Unbiased Review

Today I will be doing another review of a recently released forex automated trading system called FXZapper. Within the next few paragraphs I will analyze this trading system by using the evidence of profitability provided on its website. I'll be able to compare the evidence with the claims made by the author and tell you if the EA offers reliable and extensive enough evidence to be considered worth buying or testing - on top of this - I'll be able to analyze the trading system evidence and give you my opinion about the possibilities this trading system has of being long term profitable. Please remember that I look for reliable trading systems which have enough evidence (reliable evidence !) to consider that they are both able to adapt to changes in market conditions and have a high like hood of generating a profit in the future.

The FXZapper website is the kind of expert advisor website which is specially dangerous to new forex traders. When you look at the site everything seems to be pure and transparent and you seem to have arrived to what some people call "the holy grail". Why wouldn't you want to buy a system that has been able to turn an investment from less than 5K into more than 100K in live trading with no extensive draw down, progressive money management, etc ? The fact is that you wouldn't and neither would I but the problem is that the evidence provided by the people who sell FXZapper is NOT that of a live trading result. Please remember this clearly - results provided by commercial EA sellers cannot be trusted - we ALWAYS require investor access confirmation in order to provide reliable verification of live testing results.

The "third party verified" status the people at fxzapper attribute to their system is NOT true, mt4stats does NOT verify investor access and their results could have been easily made up from backtests and updated. If you check the backtests and the live tests you may notice a very strange coincidence within the trades, something which would have NEVER been expected for a scalper given the fact that spread widening and requotes would have affected trading to a very large extent. Why do they avoid to show investor access or myfxbook investor access verified results ? The truth is that the "live results" shown are probably NOT the result of live trading but a made-up html made up from backtesting results. If I am wrong then I encourage the people at fxzapper (which I have already emailed) to post investor access, something which I am almost sure they won't do. It is also important to notice that their results are NOT updated live (which could easily be done every hour if this "live" trading was true), something which points out that they are NOT updating this from a live account but feeding it with premade html statements.

Now things turn out even worse when you do some research about this FXZapper trading system, several sources online point that the EA is a copy of a free EA created by Funyoo called XBars MA Scalper, something which would not be new to the creators of this EA which seem to be the creators of FxBrokerBuster yet another knock off of a funyoo freely available trading system.

Analyzing the backtests tells you more about this expert advisor's trading tactics, the backtesting results show you a 7:1 risk to reward ratio and indeed a very small take profit of only 10 pips which makes the EA subject to one minute interpolation errors in backtesting, reason why the profitability of the system seems to be extremely high on the backtesting results. As I pointed earlier, the fact that this EA is a scalper will also mean that it will suffer from great divergences between demo/live/backtesting due to the re-quotes, spread widening and slippage which are common when live trading.

What I see with this EA - without assuming that it is a scam copy of another EA - is a deceitful attempt to present made-up statements as live trading results which shows in the obvious disregard towards the basic investor access verifying process which is VITAL to know if live trading results are indeed real and coming from a live and not a demo account. Then the backtesting results tell me that this EA is probably not going to have accurate simulations or demo/live consistent trading results since simulations and demo trading are simply ignoring execution problems which become vital when dealing with this problem.

To sum it up, the lack of reliability of the evidence makes this EA not worth buying or testing for me. If the people at FXZapper offer investor-access to the supposed "live results" and show us evidence that their code is NOT the same code as the funyoo EA mentioned above then, and only then, will I reconsider doing this review. Meanwhile, this people should really take a lesson in honesty and ethical behavior... Taking an EA made by another guy, changing its name and selling it under false live testing results ? Come on... The line must be drawn somewhere !!

If you would like to learn more about my experience in automated trading and how you can profit too using this type of systems by trading with sound risk and profit 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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