Forex MegaDroid Sees Into the Future!

As luck would have it a new forex "robot" launched to great fanfare last week.  Unfortunately apart from everything else I'm moving house at the moment, so I didn't notice all the hype accumulating in my spam folder until well after the day of the big launch.

Forex MegaDroid apparently uses some new "artificial intelligence" technology called "Reverse Correlated Time And Price Analysis" (or RCTPA for short) to predict "the immediate future with 95.82% accuracy" and/or "with an 81.26% Accuracy Rate Over The Next 2-4 Hours". The product is a snip at only $97.00 as I write this, although apparently the price is going to increase real soon now.  Of course, if you buy it using your own Clickbank hoplink it actually costs a lot less than that, and I couldn't resist the temptation to do just that.

Having downloaded the package I was surprised to discover that it doesn't contain any clairvoyant droids, but instead consists of a MetaTrader expert advisor, an accompanying DLL and a manual in PDF format. I quickly installed it on a demo account and tried to do some backtests.  The first problem I encountered was getting the time set correctly.  One of the input settings you can change (and must get right to see decent backtesting results!)  is called "GmtOffset".  Once you've got that sorted out the backtest results look OK when the MegaDroid is set up using the default settings described in the manual.  I guess that's the very least you'd expect from such a product.

It's far to soon for me to write a proper Forex MegaDroid review, but on a first read through the manual it doesn't look like it will be a whole lot of use to a forex novice.  You can tweak some settings to control money management, including an option to use Ryan Jones' fixed ratio method, but the vital significance of this aspect of any forex trading system is not even hinted at, apart from the bland statement that:

Many people starting out in trading have difficulty with the principles of money and risk management.

Despite my various reservations there are a couple of other things I agree with Albert and John (the developers of Forex MegaDroid) about. Here's another extract from their manual:

The Strategy Tester can only do the best it can and sometimes that can result in misleading information if you are not aware of how things work.

and this is one from their website:

Every few years the market goes though dramatic changes. Changes in volatility, changes in range, changes in “time of day movements”. We are in a new reality now.

At the end of the day what really counts is not what you or I think about all the hype, or even what the backtest results appear to show. What matters to you and I is whether a trading system, as used by a particular individual, makes money in this new reality when "forward testing" with real money in a real brokerage account.

Here at Trading Gurus we'll be performing our own tests on the Forex MegaDroid, and we'll let you know what we discover.