Forex Megadroid (Automated Forex Trading System)
What is going on with Forex Megadroid?
The developers as shown on their website says that as of today 25
September 2009 they have not had a losing trade since 20 March 2009.
The professional forex trading review sites whom trade this robot all agree that this is not the results they are getting. With the default settings this automated trading system is currently running at a loss.
What is the problem with this robot?
Having monitored results since its release to the public, there are many buyers whom are asking that exact question. Why is this robot hardly ever trading? Why are my results so poor? They compare it to the developers live trades shown on the website and wonder - what is going on....? why is not my robot trading like that?
The answer for this is not apparent right now. As the same broker has been used on some review sites as that traded by the developers.
My suspicion is that the forex megadroid software is malfunctioning? There is such a large difference in trades and results between most users.
A cause for concern is the large initial stop loss that is progressively tightened. Assuming a false trade is initiated by the software, this large initial stop loss has the potential to wipe out all the many smaller profits. The initial stop loss starts at 200 pips before moving closer. This setting cannot be changed by the user.
Updated review information and warnings
Update 31 August 2009
Since launched to public the results are NOT holding true to marketing hype.
Update 21 September 2009
Results from Ben Cook's advanced settings (refer below) are working well. This week also saw good results coming in from the recommended settings, although some review sites did not get any trades on low risk settings.
I recommend watching Ben Cooks modified setting results for the next couple of months. (I will keep you updated).
Update 23 September 2009
This robot has now been running on live accounts for two months by numerous traders using a variety of brokers as well as the same broker as the Forex Megadroid developers are using. The evidence shows that none of the review sites that I monitor have been able to achieve similar results to that shown on the Forex Megadroid website.
The reasons for the difference could be that the results shown on the Megadroid website are from a "demo" account?
It is also critical to ensure the robot runs 24 hours a day without interruption. A high quality forex vps service should be used so that the system is not re-booted every day.
Whatever the reason, I would be careful using this robot with it's current settings. An error in the software could trigger it to open a new position. With it's initial stop loss setting being relatively large these open positions have the potential to quickly destroy any built up profits.
Warning about broker choice. The frequency of trades will differ depending on brokers.
System profitability based on frequent small winning trades with infrequent larger losses. For this system to be profitable you must be able to achieve frequent trades through your chosen broker.
Update 27 November 2009
In the previous two months this robot has redeemed itself. It has made infrequent profitable trades on a weekly basis. The system is a profitable one even run on default settings. A realistic yearly profit with default setting is estimated at about 30% to 50%.
Now back on recommended list for forex trading systems.
Keep checking back for updates as results come back from several of my independent review sites whom run this robot.
Update 27 September 2010
Unfortunately Ben's modifications to improve this system failed. He now recommends to trade the system with default settings. This is what he says "With the new release of MegaDroid v1.3 and changing market conditions for EUR/USD I think the most prudent way to trade MegaDroid is to only trade the Default chart (with Aggressive=FALSE). I think it best to focus on developing a portfolio of trading strategies with MegaDroid being only one component".
He also says "Forex MegaDroid continues to be a rather consistent trading robot. It does not trade very often but still maintains a fairly high win percentage".
Brainyforex now places Forex Megadroid on the "extreme caution" list as it does not produce as many trades as the developers suggest on their sales page.