What actually is Forex Espionage? It is one in the line of the current EA’s (Expert Advisor - a program that is used inside MT4 trading platofrm in order to trade forex automatically) that is advertising itself as capable of creating enormous wealth for its clients.
On its web site, it is showing to have almost perfect track record with profitable trades of 93% while the account equity went up from $10,000 to over $40,000. Yet the same statement on the same web page shows much lower profitability trade of fewer than 80%…and the scanned image of the results is masked in such a way so as not to show exact dates of the testing period those trades or what the worst drawdown was, making it all very ambiguous indeed. I guess, the company thinks someone is just going to purchase the system without looking at all of the details they themselves provide.
This is all very similar to some other EA’s who obtain such results only though selected period of time and by changing profit target and stop loss parameters so as to obtain highest profitability trades without much concern for long term system durability.
However, in order to confirm those claims, we had to open a demo account with a broker who supports MetaTrader 4.0 platform, purchase a system and do some rigorous testing.
Results show that under the normal settings and money management rules, profitability trades decline to below 60%. Using the 4 hour data bar on EUR/USD currency pair as per company recommendations, we got to less than 8 trades per month.
The system is capable of generating profit, but it is not nearly enough to sustain claims like those that the company is stating. Its return on account is measured in a small single digit percentages and not in doubling the money every few weeks as the company would like you to think. There are also draw downs to worry about, and it is not uncommon to have 3-4 losing trades back to back.
If the results in the real time do not significantly improve, we think it is only prudent to ask for our money back.
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