Unbiased Review of Forex Insider Pro

Forex Insider Pro seems to be a typical trading robot hyped up by its own creator that is supposed to take all your money worries away. The company’s says how individuals can make over $8,000 using it, yet if the system is so great, then why not make $80,000 or even $8 million. The forex market is certainly big enough that it could support those number, so what is stopping the system?

Basically, if the company wants to show the real results, it would be very easy thing to do. They could just scan the broker statements during the month their system performed well and showed it to us all - well, they have done exactly that showing September of 2009 having 3 trades with all finishing positive. Three trades, if you pay attention to it, were all having a stop loss in excess of 150 points? If you want to calculate it right from the statement they were showing to us, they were risking over $450 to get those winning trades with the account balance of $1,000. That is not trading, but worse than playing roulette!?!

And what about the rest of months, or do they plan us to trade for just one month? If they do not have even that, not even one year worth of spectacular performance to post, how can they expect us to pay for their pipe dreams?

Well anyway, if you analyze the system, you can see it consists of three simultaneous positions entered at the same time. This is done so that the position can be exited at 3 different points, with two of them targeting different profit taking while the third one is left to be hopefully exited through trailing stop with the most profit generated. The promise of this strategy is very good because it is trying to maximize the return, yet it also means that the loss taking will be 3X as big.

Regardless of interesting promise of exit rules, this system just seems too risky to even try it out, and we would suggest for anyone to stay away from it.

Unbiased Megadroid Review

Forex Megadroid is one of the most popular Forex trading robots.  It is fully automated system optimized to follow currency markets and execute trades in the clients’ accounts.  

Benefit of this trading approach is that clients can still profit and make money in Forex without any prior knowledge about trading and currency markets.  And for those that are experienced and already have different trading system, Megadroid can help them diversify their income and improve their bottom results. 

But everyone, in order to pay bills, needs to make money consistently.  It is not about one winning trade, but winnings every single month.  That is what this robot promises to do.  Regardless of how you feel and how much time you have on your hands, it works.  It will position its trades, take winnings and losses, all based on back tested formulas that showed spectacular back tested and real time returns.  It can have over 90% of profitable trades providing you with much needed stability as it filters data out using hourly charts and specializes in the most liquid Euro-US Dollar currency pair.

Most systems that accomplish this do it with setting winning targets very low while not enforcing tight stop loss.  This is one of the red fags that people have to look into when considering this system.

In order to convince yourself of its true potential (and company’s lauded returns that are superior to 100% annually), you can open a small or even a demo account with a broker that supports MetaTrader 4 platform which is needed for this program to function.

The company made the set up of the program as easy as possible, and most people accomplish it within minutes.  Proper documentation will make even tech challenged people fell at ease.

Only notable issue with this robot is that its customer service can be slow at times.  They do answer e-mails sent to them, but the answers may come back after few days – it’s and issue most likely created by software’s popularity and demand, and we are hoping that as we write this, the company is working to solve it.

All in all, this EA seems to offer some promise unlike many other ones that are completely useless.  However, the results that were obtained on currencies other than EURUSD are very discouraging and stop us from having a full faith about this system.

Lower the Risk of Trading by Diversifying (Basics No.3)

Trading Forex market can be extremely risky venture, and many that loose all their deposits can witness to that.  Yet there are ways that the risks can be lowered to manageable levels and keep them under control while at the same time exploiting full benefits of market earning potentials.   So, look at some of these risk lowering means:

1)    Diversify, diversify and diversify. 

First do it by choosing different brokers.  If one goes down, probably another one won’t.  If spreads are suddenly widened, maybe one will have better ones than the other. 

Secondly, you have an option to employ as many trading styles and systems as you see fit, especially if the strategies are pre programmed.  You only limit the amount of trading systems you use by your own knowledge and experiences in Forex, and by how much you want to be diversified.  There, you can work in Forex as much as you want to.

Lastly, trade different currency pairs, especially if they are unrelated to each other like EUR/USD or JPY/GBP.  Your system may work on one, but not the other. 

However you diversify, you have to make sure you do not over complicate.  Simple things can work the best, and if the result is that you can not concentrate or execute well, then the benefits of diversification are probably non existent.

2)    Trade the most liquid instruments.  This is to address the problem you may have when trading different currency pairs.  If your spread is high, so is your risk.  It is as simple as that.

3)    Don’t day trade the market right before or after economical reports.  Schedule of major and potential market moving releases can be found in many places including in my regular weekly update post.  Ten minutes before the announcement when market suddenly quiets down may offer few opportunities.  And twenty minutes after the announcement may be so volatile that your stop loss will be taken out regardless of where market may end up going afterwards.

4)    Use a proper money management rules.  You probably already knew this by reading my previous post. But anyway, by limiting your maximum loss to less than 5% of your equity, your risk will be tamed from a blood-tasted shark to a little kitten size ferocity.  Then you may decide to play with the market, rather than fear for your bare life. Regardless of what anyone tells you, both of those emotions are felt as reality in the marketplace every single day by thousands of other traders.

GoGo to the next Basics No.4 or back to Basics No.2