Forex Megadroid Review
These days as the interest in forex trading has exploded there really are dozens of EA s out there, all of which of course claim to be better than their competitors and a sensible person, whether they have forex trading experience or are just getting into the game will be best served by looking beyond the inevitable hype on the sales page to what each EA can actually do and how it has performed in the past. The Forex Megadroid sales page makes a lot of very lofty claims but the question is does it live up to them?
Overview of Strategy: The Forex Megadroid was developed and is owned by two traders – Albert Perrie and John Grace – who claim 38 years of Forex trading experience between them and claim that they created their robot to “think” in the same way as a human trader might instead of base its strategy on historical results alone.
To this end the Forex Megadroid uses a system that is called the Reverse Correlated Time and Price Analysis (RCTPA) . This in theory allows the robot to read what has happened in the past to predict the future. A sort of psychic EA? Who knows but it does seem to do rather well the developers claim 96% accuracy but we will have to look to some of the backtrading to see if that really makes a difference or not.
Forex MegaDroid bases all its strategy in very short time frames. It is indeed a scalper as opposed to being a medium term or day trader. It is claimed that unlike other Forex robots it can perform in any market condition and also that it is completely undetectable to any other Forex broker, something that if it is true may give you quite an edge over others using different EA s that can be detected.
Forex Megadroid also comes with a Recovery Mode, meaning essentially that if you do experience losses you can cut back on them and also double the size of your trade lot size to recover lost capital as soon as possible.
One potential downside to the Forex Megadroid is that it only trades in the USD/EUR, so it does not trade that often or at least not with the frequency that some of the multi-currency Forex robots do.
Backtesting: On their sales page the Forex Megadroid developers do make something of a song and dance about the fact that as of September 18th, 2011 their robot has made a 5,146.45% net profit since 1/1/2009. But its nice to have some independent backtesting results to have a look at before you go getting to excited. In these results from myfxbook.com the average win is showing at 6.74 pips/ $6.72 while the average loss is posting as -38.01 pips/-$38.55. Despite a huge drop in these results in July of 2011 these results are fairly positive with 52 out of 59 trades made in the example coming up winners.
Price: When you go to the Forex Megadroid sales page somewhat annoyingly you have to click through seven screens of sales pitch before the actual price is ever revealed. Once you have made it to the check out page you discover that that price is a rather reasonable-compared-to-some-other EA s $67.00. For your money you get immediate access to the product so if you already have a broker set up you can going right away.
Reading through the many comments on Forex trading forums there are a lot of complaints about the customer service – or lack of it. There is a stated 60 day money back guarantee but some of the commenters stated that actually acting on that was very hard. Against that there are a number of very positive comments about the standard of customer service as well, so perhaps it depends in the day!
Conclusion: If you are happy to stick to trading in a single currency pair – and the USD/EUR pairing has been one of the better performing ones over the last few years – then the Forex Megadroid may be just the EA you are looking for. The $67 price tag does, to some extent, minimize the risk involved in trying this particular EA so that you really have little to lose by at least giving this EA a try.