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Exciting forex expert advisors competition

January 26, 2010 By Raj Leave a Comment

Any one heard of this competition? A competition between the authors of non-commercial expert advisors is going on at http://www.forex-robot-world-cup.com/. Non commecial expert advisors mean expert advisors that are not being sold or marketed anywhere but are solely used by their developers.

The first prize is $100,000. The competition has two phases. The first phase is a screening phase and the second phase is live (real money) trading phase.

In the screening phase 329 authors participated out of which 10 expert advisors are selected for live trading phase. In the screening phase around 320 expert advisors are taken out as they did not do well in a short period of time which is 2 months.

Now there are only 10 expert advisors are left which are already trading on live accounts. You can see the results of the expert advisors on the site. One expert advisor is trading good which made around 160% profit with in the 11 days.

I am not sure if this competion is real or not but it is fun. Go and check it.

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Some of the important things you have to observe in the backtested reports when you buy an expert advisor or when you backtest an expert advisor

January 11, 2010 By Raj Leave a Comment

Forex expert advisors or forex robots are mechanical trading systems that buy or sell currency pairs automatically when some conditions are fulfilled. But not all the expert advisors can make profit. Some expert advisors may result in losses also. So you have to look for many different things before you buy an expert advisor. If you want to know all those things you can read my article at “http://www.forexbees.com/things-to-watch-before-you-buy-an-expert-advisr/“.

As I mentioned in that article one of the important thing you have to look for is backtested reports. This article is mainly about the things you have to look for with in the back tested results, if the author of the expert advisor is providing any. You can also use these if you are back testing an expert advisor. If you want to know how to backtest an expert advisor you can read my article at “http://www.forexbees.com/how-to-backtest-an-expert-advisor-in-metatrader/“.

So if the author of the expert advisor provides backtested reports or if you tested an expert advisor you will see the following kind of report after the backtesting is completed.

Example Backtested Report

Example Backtested Report

In the above picture there are many things that you see but the following are the things I would like to explain you as I consider them important.

1) Currency pair – If the author of the expert advisor does not provide any information about the currency pair for which the expert advisor works, you can look for this field. I have seen many expert advisor’s websites and some of them don’t provide any information about the currency pair for which it works. So I generally look for the backtested results and then I look at the currency pair text in that, to check for which pair it works.

2) Period: The same thing as above. If you don’t know for which time frame it works you can look for this. You can also check this to know about the length of time period it was tested.

3) Model: This is an important one you have to watch out. There are three models available when backtesting an expert advisor. They are

  • Every Tick
  • Control Points and
  • Open Prices only

In all of the above “Every Tick” model is the precise method as it uses every tick when testing the expert advisor. So if the model is showing “Every Tick” then it is a good one. If it is showing anything other than “Every Tick” model then the results are not believable.

4) Modelling Quality: Modelling Quality is another important factor. Modeling quality is the number of ticks modeled during testing. It is in percent value. Lets say it is 50%. That means only half of the ticks are used by the expert advisor when testing it. When I look in the reports I look for the modeling quality to be at least 90%. If it is not 90%, I think that it is not tested properly and I won’t believe in the results.

5) Initial Deposit and Total Net Profit: Some expert advisor authors may say that the expert advisor has made one hundred thousand dollars in 30 days which sounds like it’s a cool expert advisor. But when I see such things the question that immediately comes into my mind is “what is the initial deposit they used?”. It might be a million dollars and a normal man like me can not fund my forex account with a million dollars. So I look for these two things “Initial Deposit” and “Total Net Profit”. If the initial deposit can be affordable by me and there is a good total net profit that means its a good one.

6) Profit Factor: This is another important one you have to look. It is the ratio between Gross Profit and Gross Loss. It is in percent value. Lets say it is 1. That means there is an equal amount of gross profit and gross loss which means there is no profit for you. When I look for this, I look for a minimum value of 2. If it is 2 that means the profit is double than the loss. If it is greater than 2 that means it is a good expert advisor.

7) Maximal Drawdown: We can say it is maximum loss incurred in backtesting. For example if the initial deposit is $5000 and the account grows to $30000. Then a loss of $5000 occurred and the amount comes down to $25000 and it went to $35000 again. If it is the maximal loss in the whole length of back testing then it is the maximal drawdown. At any point if the maximal drawdown is not below the initial deposit and if the graph is continuously raising then it is good.

8) Maximal Consecutive Losses: These are the consecutive losses that occurred. The expert advisor is good if it is a small number.

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Forex Expert Advisors Or Forex Robots List

January 9, 2010 By Raj Leave a Comment

List of expert advisors:

I have collected a list of expert advisors from clickbank and you can check them at the page “http://www.forexbees.com/expert-advisors/“. The following is a small article about expert advisors in case you don’t knwo what these are. The following won’t give you full information about expert advisors but it will give you an introduction about expert advisors.

what are forex expert advisors or forex robots?

A forex advisor or a forex robot is a mechanical forex trading system that opens and closes trades on behalf of you with out manual interference. They are software programs developed in such a way that they sell or buy the currency pair you wish when some particular conditions are matched. Most of the available forex expert advisers are developed for metatrader forex platform. If you don’t know what is a metatrader platform or how to trade on metatrader platform you can watch the videos at my article “http://www.forexbees.com/how-to-use-metatrader-for-forex-trading/“. Most of the brokers offer metatrader platform for forex trading. You can download this and open a demo account to check how you can use this platform for forex trading.

How does an expert advisor work?

Expert Advisors buy or sell currency pairs when some particular conditions are fulfilled. For example if you wish to sell a currency pair whenever the currency pair crosses below a moving average line or buy a currency pair whenever the currency pair crosses above a moving average line the expert advisor can be coded to do that. These programs are developed in MQL4 programming language. The above is just an example. The expert advisors available in the market today, use many different conditions and indicators either to sell or buy currency pairs.

How to use an expert advisor?

To use an expert advisor you need to install the expert advisor or forex robot first. Some expert advisors come with an executable file which you need to just click on it and select the metatrader folder you wish to install it. For example you downloaded the metatrader platform from FXDD and installed it in Program Files in C drive and you want to install the expert advisor on this you need to select the folder “C:\Program Files\FXDD – MetaTrader 4″. Some expert advisors directly give you the expert advisor files which are generally with the extension “.ex4″. You need to copy this file to the “experts” folder under your metatrader folder. For example if you are using FXDD metatrader you need to copy this “.ex4″ to the folder “C:\Program Files\FXDD – MetaTrader 4\experts”. Sometimes you may get some additional files like “.dll” files but you will also get a clear documentation of how to use it.

After you install the expert advisor you definitely need to backtest the expert advisor. Backtesting an expert advisor means to check it how it worked for past years. If it works good for the past years that means there are very good chances that it works for future years also. If you don’t know how to back test an expert advisor you can check my article at “http://www.forexbees.com/how-to-backtest-an-expert-advisor-in-metatrader/“. As I said, this is not a full article about expert advisors the above is just an introduction. You can check the list of expert advisors at “http://www.forexbees.com/expert-advisors/“. I will keep on adding more  to this list.

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Forex Megadroid Expert Advisor Real Review With Changed Settings

January 6, 2010 By Raj 3 Comments

Forex Megadroid

I have written a review about the forex expert adviser “Forex Megadroid” earlier. The review contains the backtested results that were conducted by installing the expert advisor as it is with out changing any settings. You can find the review at http://www.forexbees.com/forex-megadroid-expert-adviser-real-review/. I have conducted another backtest by changing the settings and this review shows you what changes I have made and how this forex megadroid expert advisor is working with those changes. Again I have conducted the test on metatrader platform from ODLMarkets with a starting balance of $5000. I have used the same “Every Tick” model for testing this, which is the most precise method for testing any expert adviser. The results are quite impressive.

The following are the only changes I made.

1) I increased the LotSize from 0.1 to 0.2.

2) I increased the RiskLevel from 0.1 to 0.2.

I touched only the above settings. I did not touch any other settings like money management, slippage etc. I just left them as it is.

The tests are conducted again from years 2000 to 2009 and a final test is conducted for the whole length from 2000 to 2009. So lets review the results.

Year 2000:

With changing the LotSize and RiskLevel from 0.1 to 0.2:

Year 2000 Graph with changing the lotsize and risk level to 0.2

Year 2000 Graph with changing the LotSize and RiskLevel to 0.2

With default LotSize and RiskLevel which is 0.1:

Year 2000 Graph with Default LotSize and RiskLevel which is 0.1

Year 2000 Graph with Default LotSize and RiskLevel which is 0.1

With default LotSize and RiskLevel the deposit of $5000 is grown to $8197. With changing the LotSize and RiskLevel the deposite of $5000 is grown to $11059.95.

Year 2001:

With changing the LotSize and RiskLevel from 0.1 to 0.2:

Year 2001 Graph with changing the LotSize and RiskLevel from 0.1 to 0.2

Year 2001 Graph with changing the LotSize and RiskLevel from 0.1 to 0.2

With default LotSize and RiskLevel which is 0.1:

Year 2001 graph with default LotSize and RiskLevel which is 0.1

Year 2001 graph with default LotSize and RiskLevel which is 0.1

With default LotSize and RiskLevel the deposit of $5000 is grown to $12128.25. With changing the LotSize and RiskLevel the deposite of $5000 is grown to $25083.60.

Year 2002:

With changing the LotSize and RiskLevel from 0.1 to 0.2:

Year 2002 Graph with changing the LotSize and RiskLevel from 0.1 to 0.2

Year 2002 Graph with changing the LotSize and RiskLevel from 0.1 to 0.2

With default LotSize and RiskLevel which is 0.1:

Year 2002 Graph with default LotSize and RiskLevel which is 0.1

Year 2002 Graph with default LotSize and RiskLevel which is 0.1

With default LotSize and RiskLevel the deposit of $5000 is grown to $10499.50. With changing the LotSize and RiskLevel the deposite of $5000 is grown to $20035.80.

Year 2003:

With changing the LotSize and RiskLevel from 0.1 to 0.2:

Year 2003 Graph with changing the LotSize and RiskLevel from 0.1 to 0.2

Year 2003 Graph with changing the LotSize and RiskLevel from 0.1 to 0.2

With default LotSize and RiskLevel which is 0.1:

Year 2003 Graph with default LotSize and RiskLevel which is 0.1

Year 2003 Graph with default LotSize and RiskLevel which is 0.1

With default LotSize and RiskLevel the deposit of $5000 is grown to $16019.60. With changing the LotSize and RiskLevel the deposite of $5000 is grown to $40625.85.

Year 2004:

With changing the LotSize and RiskLevel from 0.1 to 0.2:

Year 2004 Graph with changing the LotSize and RiskLevel from 0.1 to 0.2

Year 2004 Graph with changing the LotSize and RiskLevel from 0.1 to 0.2

With default LotSize and RiskLevel which is 0.1:

Year 2004 Graph with default LotSize and RiskLevel which is 0.1

Year 2004 Graph with default LotSize and RiskLevel which is 0.1

With default LotSize and RiskLevel the deposit of $5000 is grown to $14457.00. With changing the LotSize and RiskLevel the deposite of $5000 is grown to $48517.25.

Year 2005:

With changing the LotSize and RiskLevel from 0.1 to 0.2:

Year 2005 Graph with changing the LotSize and RiskLevel from 0.1 to 0.2

Year 2005 Graph with changing the LotSize and RiskLevel from 0.1 to 0.2

With default LotSize and RiskLevel which is 0.1:

Year 2005 Graph with default LotSize and RiskLevel which is 0.1

Year 2005 Graph with default LotSize and RiskLevel which is 0.1

With default LotSize and RiskLevel the deposit of $5000 is grown to $14622.70. With changing the LotSize and RiskLevel the deposite of $5000 is grown to $36112.40.

Year 2006:

With changing the LotSize and RiskLevel from 0.1 to 0.2:

Year 2006 Graph with changing the LotSize and RiskLevel from 0.1 to 0.2

Year 2006 Graph with changing the LotSize and RiskLevel from 0.1 to 0.2

With default LotSize and RiskLevel which is 0.1:

Year 2006 Graph with default LotSize and RiskLevel which is 0.1

Year 2006 Graph with default LotSize and RiskLevel which is 0.1

With default LotSize and RiskLevel the deposit of $5000 is grown to $9659.45. With changing the LotSize and RiskLevel the deposite of $5000 is grown to $6600.25.

This is the only year where with changing the LotSize and Risk Level, it made less amount of money than with out changing the LotSize and RiskLevel. But the deposit is never lost and it still made some profit.

Year 2007:

With changing the LotSize and RiskLevel from 0.1 to 0.2:

Year 2007 Graph with changing the LotSize and RiskLevel from 0.1 to 0.2

Year 2007 Graph with changing the LotSize and RiskLevel from 0.1 to 0.2

With default LotSize and RiskLevel which is 0.1:

Year 2007 Graph with default LotSize and RiskLevel which is 0.1

Year 2007 Graph with default LotSize and RiskLevel which is 0.1

With default LotSize and RiskLevel the deposit of $5000 is grown to $6521.00. With changing the LotSize and RiskLevel the deposite of $5000 is grown to $7751.05.

Year 2008:

With changing the LotSize and RiskLevel from 0.1 to 0.2:

Year 2008 Graph with changing the LotSize and RiskLevel from 0.1 to 0.2

Year 2008 Graph with changing the LotSize and RiskLevel from 0.1 to 0.2

With default LotSize and RiskLevel which is 0.1:

Year 2008 Graph with default LotSize and RiskLevel which is 0.1

Year 2008 Graph with default LotSize and RiskLevel which is 0.1

With default LotSize and RiskLevel the deposit of $5000 is grown to $10940.45 With changing the LotSize and RiskLevel the deposite of $5000 is grown to $18034.80.

Year 2009:

With changing the LotSize and RiskLevel from 0.1 to 0.2:

Year 2009 Graph with changing LotSize and RiskLevel from 0.1 to 0.2

Year 2009 Graph with changing LotSize and RiskLevel from 0.1 to 0.2

With default LotSize and RiskLevel which is 0.1:

Year 2009 Graph with default LotSize and RiskLevel which is 0.1

Year 2009 Graph with default LotSize and RiskLevel which is 0.1

With default LotSize and RiskLevel the deposit of $5000 is grown to $11600.05. With changing the LotSize and RiskLevel the deposite of $5000 is grown to $20026.30.

Year 2000 to 2009(Continuously Run):

With changing the LotSize and RiskLevel from 0.1 to 0.2:

Year 2000 to 2009 graph with changing the LotSize and RiskLevel from 0.1 to 0.2

Year 2000 to 2009 Graph with changing the LotSize and RiskLevel from 0.1 to 0.2

With default LotSize and RiskLevel which is 0.1:

Years 2000 to 2009 Graph with default LotSize and RiskLevel which is 0.1

Year 2000 to 2009 Graph with default LotSize and RiskLevel which is 0.1

With default LotSize and RiskLevel the deposit of $5000 is grown to $6383712.55. With changing the LotSize and RiskLevel the deposite of $5000 is grown to $42951494.60.

So overall this expert advisor is doing much better when the LotSize and RiskLevel are 0.2 than the default which is 0.1.

The following are the different years reports when the LotSize and the RiskLevel are 0.1(default) and 0.2(Changed).

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Is there any forex expert advisor that really works?

November 5, 2009 By Raj 1 Comment

In the past I have used some forex expert advisors that really did not work. I have already written a review about one forex expert advisor like that on this site. I would like to know if you guys are using any expert advisors that really work. This information will also be useful for other forex traders also. So please come and discuss about any expert advisor that you have used in the past or using currently and how it has worked or working. So please come and discuss. I will write my experiances also about the expert advisors I have used.

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