October 19, 2009

Forex MegaDroid Summary

19th October

During the last two and a bit months I have been trialing Forex MegaDroid and feel that this has been long enough now to gain an insight into the trading robot to be able to make an reasoned and informed opinion of it. In the main the bot has traded sensibly and only last week it made three attempted trades all going Short on the Euro and exited all three early as the main Trend on the 1H time frame was Long at the time.

There were  no trades during the week of the 5th to the 9th October. Forex MegaDroid has had a further update to version 1.21.

On the 12th October it put in a Short order @ 23:51 for 2.55 lots at 1.47825, setting a Stop Loss 41 pips away at 1.48237 and a Target of 60 pips at 1.47225. It closed out the trade prematurely at 01:40 at 1.47821 for 0.4 pips, not sufficient to cover the 2 pip spread on IBFX broker. As a result this trade made a loss of $40.80.

The next day the bot put another Short into the market @ 22:00 for 2.55 lots at 1.48529 and set it’s Stop Loss at 1.48949 (42 pips) with a profit target at 1.48029 (60 pips). it exited the trade just after Asian market open at 1.49290 for 2.4 pips and a small profit of $10.20.

On 14th October at 23:01 it placed an order for 2.55 lots at 1.49355 and a Stop of 99 pips due to the previous volatility of the market, at 1.50347 and a take profit of 60 pips at 1.48755. It got out just after midnight once again at 1.49290 for 6.5 pips and a profit after spread deduction of $114.75.

The overall profit on the $50k demo account is thus $580.88. For most of us I guess the opening balance with a broker would be in the region of $500 to $1000 so, if we scale the profits down in line with our bank we can see that the anticipated profits on an account 50 to 100 times smaller than the demo bank I used, would be in the region of $6-$12 only.

The bot has worked, but one would have needed the large account size to really see the benefit under the trial conditions.

It could be that, even though I ran the same aggressive settings of the bot throughout the test, with a little more tweaking of the settings, that MegaDroid could have done even better, but I am a more, risk adverse trader than many perhaps and would almost certainly have chosen a lesser exposure per trade than I ran on the demo account during the trial period.

Running the bot remotely on a Virtual Private Network/Virtual Private Server (VPN/VPS) would have been preferable. This would be worth considering if one intends to run a Live account with a decent deposit amount for the £15 per month or so that a VPS would cost as it would also save the need to keep one’s PC running 24/7 throughout the week.

On a different broker MegaDroid may well perform better, it did place trades early in the trial at the same times as I ran it on an Alpari brokers MT4 so I know the bot is consistent in when it places it’s trades. It has just not performed well on IBFX and I would suggest that perhaps this could be a significant factor in the results. The two pip spread has meant that many trades that were exited early suffered from a $25 penalty for each pip less than spread that it closed out on when it has used standard trade sizes.

Overall then I suggest that Forex MegaDroid be assigned a Neutral rating as I feel that the trial has maybe, stifflied it a little and  it’s full potential is still an unknown. For what MegaDroid costs, coupled with the way it has behaved during the trial it could be worth taking a chance with it.

You can get Forex MegaDroid here:

http://www.cash-master.com/forexmegadroid.php

Filed under Forex by Jon

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