Over at Trading-Gurus.com we’ve been running tests on Forex MegaDroid since it launched with the assistance of an army of Clickbank affiliates and a vast quantity of hype at the very end of March.
I don’t know if you remember, but this Droid (actually a MetaTrader 4 expert advisor) can apparently “see into the future” with the aid of some new “artificial intelligence technology” confusingly entitled “Reverse Correlated Time And Price Analysis”. For comparison purposes we’ve been testing it alongside a robot of our own, which doesn’t use any intelligence whatsover. In fact it’s so dumb it does everything wrong! It uses random entries, then it stays in the market 100% of the time and finally it uses Martingale style position sizing. In addition to this long list of “faults”, you can also download our “Robot” from our website completely free of charge, solely for educational purposes.
Here’s how the “Droid” has been doing throughout April and May:
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By way of comparison, here’s how our “Robot” has been getting along over the same time period:
To summarize those equity curves:
- Both accounts started with $500.00 on April 1st
- By the end of April our Robot had reached $742.52. By the end of May that had increased to $961.00
- By the end of April the Forex MegaDroid had reached $573.76. By the end of May that had DECREASED to only $564.82
Which would you rather be using? Before you answer that loaded question consider these points:
- The Droid was used with the default input settings, which amongst other things means a fixed fractional position size.
- Other money management systems are apparently available, but the Droid’s manual doesn’t give you any guidance on how to use them successfully. We stuck with the default.
- Maybe a bigger position size or different money management would have assisted the Droid somewhat?
- Our Robot uses the much derided Martingale style position sizing. It hasn’t blown our account yet. Maybe it will one day soon?
- These tests have been performed on demo accounts, not on live accounts using real money.
Our Robot comes complete with source code and a Wealth Warning. It should NEVER be used on a live account under any circumstances whatsoever. That blowout might be just around the corner. Based on these results maybe the Forex MegaDroid should be accompanied by a similar warning? It’s clairvoyance does seem to have been rather short lived, doesn’t it?