It didn't take long for the next forex lawsuit to arrive, and from the same source too! Following on from their action against FXCM, the Business Trial Group of Morgan & Morgan, P.A. has announced another class action lawsuit, this time against FXDirectDealer, LLC (more commonly known simply as FXDD). According to the announcement the plaintiff this time around is Hugo Cruz, and once more the suit accuses:
Filed under Brokers by 
I've had a live account with London based broker ActivTrades for quite a while now. It's one of their "Standard" MetaTrader 4 accounts. I opened it because it offers micro-lots and lots of exotic currency crosses, along with a wide range of non-forex instruments, including stock indices, gold, oil and other commodities too. That combination is a little hard to come by at other brokers. It is slightly old fashioned however, in that it still uses 4 decimal places and fixed spreads. 2 on the FTSE 100 and 3 on GBP/USD for example, most of the time at least.
Filed under Brokers by
In our previous live test results for June and July the Forex MegaDroid MetaTrader 4 expert advisor did at least manage to make a profit. Sadly the "robot" seems to have lost it's way over the summer holiday season. In our live account at Alpari UK it lost money. In percentage terms it lost a lot of money!
Filed under Trading Systems by
At long last August 2nd has been and gone, and the dust has settled slightly. We'll cover what still works and what doesn't in a forthcoming post, but for today we're going to concentrate on who said what, and when. We'll do that by working our way down the list of retail forex brokers included in the CFTC report on the financial strength of Futures Commission Merchants. For some reason it seems the better capitalised a broker is the less it has to say about the FIFO fiasco!
Filed under Brokers by
As our regular readers will know we've been having a few problems getting consistent results from our Forex MegaDroid backtests. We've also had a major problem with our forward tests. The robot hasn't traded for weeks! However last night the Droid leapt back into action with avengeance! Please bear with us while we explain what our various virtual private servers discovered for us while we slept.
More on The Forex MegaDroid Forward Testing Fantasia – Variation 1
Filed under Trading Systems by
An essential part of evaluating any trading system, whether you developed it yourself or bought it over the internet, is to discover how robust your chosen system is to changes in the system input parameters. Unfortunately the developers of Forex MegaDroid don't give their users the ability to alter the parameters that control their robot's "artificial intelligence". We assume there must be a few hidden somewhere inside the Droid's electronic brain, but there is no way for us to twiddle them with our virtual screwdriver. We assume that Albert and John spent many months tuning their creation to perfection. They have, however, made it very difficult for us to try and work out if they have over-optimised their robot's mega-mind. Maybe it will suffer a virtual epileptic fit one day soon? We have no way of knowing.
Filed under Trading Systems by
After a lot of experimentation we finally managed to work out how duplicate the first trade in 2009 shown on the Forex MegaDroid website. Not only that, but using a demo account from FXDD that supplies historical data with only 4 decimal places, and working out exactly the right values for the Risk Level and GMT Offset input settings allowed us to duplicate the first 75 trades, up to and including the loss of $4672.00 on March 18th. After that though, the differences between our backtest results and those shown by the Forex MegaDroid team become more and more obvious.
Filed under Trading Systems by
I received an email this morning from Forex.com promoting the benefits of opening a MetaTrader account with their FSA regulated UK operation. The headline read:
Total control of your trading strategies. – Don't let hedging restrictions affect how you trade your account.
When I clicked on it I didn't receive lots more information about how hedging restrictions might affect my trading. Instead I found myself looking at an online application to open an account at Forex.com UK
Filed under Brokers by
As we reported back in May, FXDD still allow "hedging" on their MetaTrader 4 accounts. Presumably they feel able to do this because their application to become a member of the NFA is still pending. The announcement that we linked to in our May article was removed from their website some time ago, but yesterday a new take on the NFA hedging ban appeared in its place:
More on FXDD Say No Hedging Doom and Gloom Highly Exaggerated
Filed under Brokers by
It's now three month's since "Forex MegaDroid landed on the Forex industry like a BOMB". The time has come to try and tie together all the backtesting, forward testing and live testing, and to decide whether to keep the Droid running on our virtual private server for a while longer. Unfortunately this is not an easy task!
Filed under Trading Systems by
