Monday, July 5, 2010

Forex Expert Advisors : Forex Samurai, an Unbiased Review

Continuing with my review of the recently released trading systems I will now dedicate a post to the analysis of the Forex Samurai trading software. This expert advisors is actually quite different from other commercially available systems since the robot does not actually make trades automatically in virtue of a fixed logic but it merely duplicated signals which are received from a third party which is - as the website says - a professional source that has a lot of experience and profitability in forex trading. On this post I will look at the evidence of profitability provided on the system's website and I will tell you what I think about this service's trading tactics and whether or not I consider it worth buying and testing.

Forex Samurai attempts to give us the ideal solution to long term profitability. By allowing a human trader to be behind the signals you receive on your trading platforms, this expert advisor allows you to trade - ideally - in the exact same way as the successful, professional trader behind the server, entering the actual trades. It sounds like a really good concept but I believe that the people behind Forex Samurai fail to show evidence that what they promise is actually real.

The most concerning fact here is that they claim to take a 10K account into more than 190K in less than a year. Their proof of this is a "live statement" that actually is just an html table which could have been created by anyone with basic html coding language. The truth here is that the so-called "evidence" of profitability they are showing you could just be MADE UP. We have seem time after time after time how EA sellers have forged statements, modified loses, made up whole accounts, etc, just to fool people into buying their products and for this reason you should NOT believe that something is real unless it is PROVED.

What is proved ? If the accounts they show are indeed real, the people at forex samurai should show the INVESTOR ACCESS information to those accounts or AT LEAST an investor access verified myfxbook account. This mode of verification is widely known in forex trading and the only reason why I believe they aren't offering it yet is because their accounts are simply not real or they are simply not live accounts. They may be trading on demo and portraying their results as "real money" when in fact they could not be or they may just be making up ALL the statements. The published statements they have on an mt4 reporting website are also NO proof of profitability since these statements can also be forged and easily uploaded. Again, investor access verification is the ONLY true way in which the real character of a trading account can be verified.

Besides this overall lack of live account verification we also have a general lack of a track record for the signals and we don't have a good idea about the profit and draw down targets. Certainly -once investor access is verified - it would be necessary to analyze the draw down periods of this system and the average compounded yearly profit to maximum draw down ratio. However I would still approach this signals carefully since the lack of backtesting (due to the human character of the signals) makes the actual long term profitability of the system a little bit uncertain.

However, if the statements are real and the people at forex Samurai did indeed achieve to take a 10K account to 190K in under 3 years I would be glad to start using their service since they would have shown an amazing edge over the market. Sadly none of the accounts have any verification that tells us that there are REAL accounts or that they are indeed accounts with REAL money. The most probable cause of this - as I have pointed out before - is mainly that one of these two things isn't true and that something shady is going on. It is hard to believe that with such impressive results the people at forex samurai wouldn't bother to take 5 minutes to verify their account's investor access in myfxbook or - even more simple - put the investor access information DIRECTLY on the website. Since the performance records shown on the website are NOT verified and could simply be forgeries I consider this trading system NOT worth buying and testing.

Nonetheless, if they give investor access information to ALL the trading accounts shown and they prove to be live accounts on reputable brokers I will gladly change my recommendation. If you however would like to learn more about automated trading and how you can code your own systems based on sound trading tactics with realistic profit and draw down expectations 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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