In yesterday's blog post, I talked about the very disappointing results of my experiment with the Forex Robot World Cup trading robot, Fusion. (To summarize, it turned a $400 trading account into $240 in about 3 weeks.)
But that doesn't mean that no forex robot can actually yield positive results.
When I first decided to dabble in foreign exchange (forex) trading, I also looked into a couple of the myriad of forex robots that are available, for two reasons. First, I knew I had no idea what the heck I was doing, and if I could buy a program at a reasonable price that did know how to do it, then I might be money ahead. And, secondly, I knew that, with a full time job, I really didn't have a whole lot of time to devote to it. Automated programs - robots - can trade for you night and day, while you sleep or are at work.
But not really having a lot of faith in them, I didn't want to spend a whole lot of money. So I bought the cheapest one I could find - a $67 program called Forex God Father. When I had it in operation for two and a half weeks and it had yet to make a trade, I decided that was not really the program I wanted. I requested - and received - a full refund of my money. (That's one good thing - since skepticism about these programs is so high, they almost all come with money back guarantees.)
After reading quite a bit of ad copy and a number of reviews, I tried one called Forex MegaDroid that sells for$97$149. [Edit: After I posted this, my son checked my data and informed that the price has apparently risen to $149 - either that, or I have forgotten how much I actually spend. At any rate, he is correct, the current price is $149.] I set it up on a demo account and let it run, and it seemed to do pretty well. It didn't trade too often - usually once or twice a week was all, and it didn't make astounding gains, but it had very, very few losses. Now don't get me wrong - it didn't come anywhere close to the gains promised by its advertising copy - a couple thousand percent. But it did make consistent, positive gains with, seemingly very little risk.
After a few months, I realized I really couldn't track its performance, because I was interspersing my own (practice) trades in with those that it made. So, on the first of January, I set it up in a new demo account with a nice even $10,000 balance, and let it run without doing anything of my own in that account. Today, 6 1/2 months later, that demo account has a balance of $14,191.74. That's a gain of 41% in just a little over half a year. No, it's not 2500%, but it sure beats the heck out of the 1 1/2 % I get on my savings account, or even the 12%/year I might (optimistically) get on my mutual fund.
So I decided, let's try it with some real money and see what it does. When I got back from my trip to see my son in Morocco in February, I opened a live acccount with $100.
Now, MegaDroid has an astonishing percentage of winning trades, but it does very occasionally have a losing one. And, for the reasons I detailed in yesterday's post, when it has a losing trade, it's likely to be a doozy. As it happened, the very first trade it made in the live account was a losing trade - it lost 5%. So right off the bat, my $100 is down to $95.
But from then on, it just went up and up and up. By the beginning of June, it was up 26% - even including having started off down 5%.
I have control of some money that's not mine. I'm going to have to pay it back, I just don't know when. But until then, I have it sitting in a savings account. After seeing the track record MegaDroid had posted over 5 months, and only one other loss, I decided that, well, like I said, I could make a lot more money than having that sitting in a savings account. Granted, there is some risk to it (according to the disclaimers on my trading account "Margined Currency Trading is one of the riskiest forms of investment available in the financial markets"), but I felt like if I monitored it closely and determined to get out if MegaDroid lost any significant portion of the money, I could mitigate the risk. So a few weeks ago, I put a substantial part of that money into my forex account. It's actually only made a couple trades since then, but it's up close to $400 - more than I would have made leaving the money in the savings account for the next 10 years! [Edit: I came home from work last night to find that it was in the middle of two more trades that ended up netting an additional $175!] And that's real, actual, spendable greenbacks. That definitely more than covers the $97 I spent on buying MegaDroid!
So my point is this - yes, MegaDroid and most other trading robots are way over-hyped. But they can still be a very,very profitable opportunity.
Fulll-disclosure - if you should click on the link above and decide to try Forex MegaDroid out for yourself, I will earn a modest commission. I have not let that compromise the integrity of my comments here.
But that doesn't mean that no forex robot can actually yield positive results.
When I first decided to dabble in foreign exchange (forex) trading, I also looked into a couple of the myriad of forex robots that are available, for two reasons. First, I knew I had no idea what the heck I was doing, and if I could buy a program at a reasonable price that did know how to do it, then I might be money ahead. And, secondly, I knew that, with a full time job, I really didn't have a whole lot of time to devote to it. Automated programs - robots - can trade for you night and day, while you sleep or are at work.
But not really having a lot of faith in them, I didn't want to spend a whole lot of money. So I bought the cheapest one I could find - a $67 program called Forex God Father. When I had it in operation for two and a half weeks and it had yet to make a trade, I decided that was not really the program I wanted. I requested - and received - a full refund of my money. (That's one good thing - since skepticism about these programs is so high, they almost all come with money back guarantees.)
After reading quite a bit of ad copy and a number of reviews, I tried one called Forex MegaDroid that sells for
After a few months, I realized I really couldn't track its performance, because I was interspersing my own (practice) trades in with those that it made. So, on the first of January, I set it up in a new demo account with a nice even $10,000 balance, and let it run without doing anything of my own in that account. Today, 6 1/2 months later, that demo account has a balance of $14,191.74. That's a gain of 41% in just a little over half a year. No, it's not 2500%, but it sure beats the heck out of the 1 1/2 % I get on my savings account, or even the 12%/year I might (optimistically) get on my mutual fund.
So I decided, let's try it with some real money and see what it does. When I got back from my trip to see my son in Morocco in February, I opened a live acccount with $100.
Now, MegaDroid has an astonishing percentage of winning trades, but it does very occasionally have a losing one. And, for the reasons I detailed in yesterday's post, when it has a losing trade, it's likely to be a doozy. As it happened, the very first trade it made in the live account was a losing trade - it lost 5%. So right off the bat, my $100 is down to $95.
But from then on, it just went up and up and up. By the beginning of June, it was up 26% - even including having started off down 5%.
I have control of some money that's not mine. I'm going to have to pay it back, I just don't know when. But until then, I have it sitting in a savings account. After seeing the track record MegaDroid had posted over 5 months, and only one other loss, I decided that, well, like I said, I could make a lot more money than having that sitting in a savings account. Granted, there is some risk to it (according to the disclaimers on my trading account "Margined Currency Trading is one of the riskiest forms of investment available in the financial markets"), but I felt like if I monitored it closely and determined to get out if MegaDroid lost any significant portion of the money, I could mitigate the risk. So a few weeks ago, I put a substantial part of that money into my forex account. It's actually only made a couple trades since then, but it's up close to $400 - more than I would have made leaving the money in the savings account for the next 10 years! [Edit: I came home from work last night to find that it was in the middle of two more trades that ended up netting an additional $175!] And that's real, actual, spendable greenbacks. That definitely more than covers the $97 I spent on buying MegaDroid!
So my point is this - yes, MegaDroid and most other trading robots are way over-hyped. But they can still be a very,very profitable opportunity.
Fulll-disclosure - if you should click on the link above and decide to try Forex MegaDroid out for yourself, I will earn a modest commission. I have not let that compromise the integrity of my comments here.
Walking with God: Talk to Him. Hear from Him. Really., by John Eldredge
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1 comment:
Dad, it looks like the price of MegaDroid has gone up to $149 since you posted that. Unless there is some kind of "promo code" to get the $97 price... Otherwise, good post. I might have some questions for you later.
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