Ray The Random Robot Commits Suicide
It has recently been pointed out to me by a sharp eyed reader of the Trading Gurus home page that Ray the Random Robot has been flatlining for quite a while now. Here's how his equity curve looks at this precise moment in time, courtesy of myfxbook:
Regular readers will remember that Ray suffered a near death experience in the Autumn of 2011. On that occasion he somehow survived by the skin of his shiny metal teeth, and lived to trade another day. A year later he finally did the job properly and killed himself off in true kamikaze style, as you can see in all too graphic detail above!
Now here's something to ponder. Ray is a robot of very little brain. As his freely available source code reveals he took essentially random entries. Despite that he somehow managed to survive for two years taking 6325 trades and making somewhere between 4% and 5% per month as a consequence. That is rather longer than some commercial "robots" one might mention. Buru Trader for example.
Fortunately long before his sad but predictable demise Ray fathered a son. Perhaps prophetically Ray Robot II was born over Halloween 2011, and his spread betting equity curve has now replaced his father's to the left of this article. Note that he also managed to maintain an average of around 4% per month for a while, but then "the markets changed"!
Whatever else you may do, please learn from Ray's heroic sacrifice, as his only son has done. Don't do stupid stuff (DDSS for short). Don't use Martingale money management (MMM for short) or any of it's close cousins in your auto-trading endeavours. If you see a "robot" with an equity curve that looks like Ray senior's (before his first big "blip" that is) run away as fast as you can. It will destroy your account, sooner or later.