Welcome back, Forex Fans.Today is the biggest day ever in the history of Automated Forex trading. The team over at http://www.forex-robot-world-cup.com/ finally unveiled their Robots and the price tag.
Yesterday, they dropped the news that the best logic of the top-5 robots were combined into a single "super" robot called "Fusion V 1.1a" that incorporates all 5 strategies. Here are the short-term performance stats on the robot:
- 354.37% real-money, live trading NET profit in 19 days
- Averages 12 trades per day
- Impressively SMOOTH Equity Curve
- Exclusive money management and risk proportion between the robots designed by the FRWCA true MULTY-STRATEGY "all in 1" profit pulling Forex robot.
- Contains a combination of five proven strategy types: - Scalping - Swing Trading- Short Term Trend Trading - Short Term Reversal Trading- Price Action-Only Based Trading
Another entry in that category is EAKAIN Scaplper pro over at: http://www.besteaforex.com/. This robot goes for $579 and sources indicate its a Megadroid on steroids and turned loose on 7 different currency pairs but with the same deadly accuracy and trade management. Whether it actually works as advertised remains to be seen. The test results from Driven2Success.com indicate its up about 69% in just 3 weeks time, averaging 18% return per week. So much for my 1% a week mantra.
The question is, how stable are those systems over a long period of time? How likely are they to blow up an account? Will the FCM's push back somehow and refuse to trade these robots?
Anyway, FRWC put together a "super bundle" which includes:
The Top 8 Robots:
- LMD MultiCurrency: 145.60% Net Profit In 60 Days
- HiRider: 88.11% Net Profit In 60 Days
- SuperVolcano: 35.25% Net Profit In 60 Days
- VREM2: 19.39% Net Profit
- Nutcracker: 14.93% Net Profit
- Simple: 8.00% Net Profit
- Neg-Correlation -USDCHF: 6.07% Net Profit
- ZOOP-EURJPY: 4.34% Net Profit
- The Fusion V Super Robot spitting out an average of 12 trades a day and returned 354.37% real-money, live trading NET profit in 19 days.
- Access to FRWC's "EA Lab" which has investor passwords to view results of EA's being tested with real money.
For now let's suspend judgment on whether its possible and see what happens. After all, the FRWC's "Live money" test period was a relatively short time, and I would like to see how these robots test over 10 years of history.
And finally, what you've been waiting for is the price tag.
A single payment of $999 buys the entire FRWC Mega-bundle.
Who knows what's going to happen next, its going to be fun to watch.
19 days live trading...anybody who pays $999 for this robot deserves to lose $999
ReplyDeleteRedford-
ReplyDeleteI just read your comments you left on yesterday's post and (as usual) you are 2 steps ahead of me! Thanks again for all the great info, you give me a lot to blog about!
Chris
Kenneth, apparently the $999 robot made 103 pips today, so investing one lot on each of the four trades would have paid for the EA. Now I don't own this thing, and never will, because the over-hype and over-buying of it will kill the advantage. Let's assume they sold (or will sell) 2000 robots at $999. The return to the operators will be close to $2 million. They put up what, about $200,000 in prize money, plus overhead of say another $100,000 or so, and bingo, they've made themselves a cool million and a half minimum. Don't need no stinking robot if you can promote your way to wealth! I would be concerned, if I were an owner of this robot, that the algorithm will be widely understood before long, and thus destroy the advantage it currently enjoys.
ReplyDeleteFolks always talk about the vast amounts of money ruling the Fx markets. These vast amounts of money are also capable of finding and exploiting every possible advantage in these markets too, taking the money from the retail clients at will. Joe Granville called these retailers the 'bagholders'. Could it be that the super robot owners will become the bagholders, owning a robot that makes a fraction of what it made in the early days.
This really suggests to me that robots might best be used as an aid to a trader rather than the be-all-end-all. Unless of course, you make your own and keep it for your own use.
Redford-
ReplyDeleteExcellent points all around.
Your estimate of FRWC's costs left out the travel expenses for the trip to Croatia to shoot the video of Drazen Ziskovic accepting the trophy as grand prize winner! Ba ha ha.
Curious as to where you got the info regarding the live performance of the Super Fusion Robot today since the statement on the site ended on 1/29/2010. If you can't reveal your sources, I understand.
So true about the unsustainability of the performance of these robots. If they were really that good, the government could create a few billion of reserves, and trade these systems and repay the national debt, rebuild Haiti and solve world hunger in a few month's time.
Thanks as aways for your comments. We're going to have to start calling you 'Lord Redford' or or some other honorary title for all your contributions to this blog and my knowledge of the forex industry.
Thanks again,
Chris
I would like to see at least a year of forward live testing. All these guys have to do to break even is to sell 150 copies, and I bet they sell well over a thousand.
ReplyDeleteJust part of the game I suppose. Kind of makes me feel like it is another commercial EA scam, other than they were able to take the "Commercial" out of the EA's in their competition. New angle or "gimmick" so to speak.
Just seems like another person trying to make a buck. I would completely retract any of my comments if they forward tested the EA's for a year and then tried to sell them.
The Fusion EA is being hosted at Forex Peace Army.
ReplyDeletehttp://www.forexpeacearmy.com/metatrader_expert_advisor/fusion_bot/demo
It shows more than four trades, while another source at DonnaForex had four trades for 103 pips. I suppose you can be selective as to which trading methods within Fusion are to be applied.
Interesting evening tonight with the 'quiet period' scalpers, such as Primeval, Megadroid, EAKAIN, whose m.o. is to trade in the quiet hours between NY closing and Asian opening. The Fed dropped the discount rate by 25 basis points after the NY close today, and the US dollar gained strength against all currencies.
ReplyDeletePrimeval got hammered with a few sizeable losses since it tends to go against big moves for a scalp in the other direction. Losing positions occured on the EURGBP cross and EURUSD. It appears EAKAIN made out ok with only one big loss on USDCHF, and several gains on the EURGBP cross ('cross' means no pairing with the USD). EAKAIN was able to win on the EURGBP because it took its trades well after Primeval made its losing trade on the EURGBP. Megadroid, on the other hand, was slammed on the EURUSD shortly after the Fed announced, so it failed on its only trade.
Big winner, EAKAIN by virtue of its EURGBP (non USD) trades, which was timed to perfection.
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