Expert Advisors are all the rage at the moment. Sexy sounding names, cheap but hard hitting marketing, claims of untold wealth and all for…..and this is the best bit…..doing nothing. With these self named “robots” you have to do nothing…it will trade automatically and you sit back and watch the money roll in.
I wanted to find out if Forex Megadroid works and does what it says on the tin or is it just a scam? I decided there were several things I wanted to find out?
1) Have traders had “No Losing Trade Since 20th March 2009″?
2) Have traders experienced gains of “340.33% To 1,193.40%” since product launch?
3) Has it maintained it’s claimed 95% strike rate.
I have been trying to complete a full test of megadroid over the last few months but having had issues with the version of Megadroid I was testing I have decided that my bad experience with running the the EA should not be the basis for a truly independent review. Nothing in life is perfect and nor would I expect it to be so one bad review does not make a bad product. Just like one good review does not make a great product either.
In this day an age it is common to see television advertisements that are promoting a product aimed at target sales of several million units yet their “strict, controlled surveys” that state “89% of users agree” with their self claims are made up of 100 or 200 people. This often means their product is endorsed by less than 0.01% of their target audience.
For such a product as a trading EA that claims to make more than the best fund managers in the world would make in 5 years let alone 1 year it dawned on me that key to making an educated decision on whether Megadroid does what it says on the tin is numbers. Number of reviews. Good or bad.
So in light of that I have been on the hunt for various reviews and test results. Naturally I wanted to also try and produce some evidence in favour of the forex megadroid ea. Nothing would give me greater pleasure than to say..”this is fantastic…buy it..trade it…enjoy the wealth you will create with it”. The only issue with finding positive reviews is that most are from people selling it. This obviously brings into question the credibility of the review. Usually such reviews are obvious to spot, most of them have specific “megadroidreview” suffix to their weblinks. But they all usually have a clickbank affiliate link for you to buy the product.
There are also a few megadroid testers who like to post about how great the system is and post on a vast number of forums. They are all championing the Megadroid cause and are very defensive of those call the product or the system creators into question. In normal circumstances I would ignore such reviews but given the lack of other positive reviews out there I have to take their opinion in to consideration albeit with a pinch of salt.
There are plenty of positive reviews for megadroid. Just do a google search and you will see quantities of paid for advertisements down the right hand side. Alternatively, you could do a search for “bravehoststamps” and “pipsbuster” who is one of the MegaDroid testers who has posted on multiple forums about how good the systems is. Although, there are occasions in his/her’s post that admit to some short comings with the system. I only used him/her as an example, I am sure there are plenty more of them out there if you just search hard enough.
Given this I can say that there are some people out there who can ‘claim’ to have had no losing trades since the product launch. However, I have not met anyone who is willing to post real broker statements (not MT4 demos) to show they have made 300-1000%.
As for the other reviews and tests? Well, there are several sites out there that have something other than pure positive things to say about the expert advisor.
Trading Gurus highlight some issues with the Megadroid EA on it’s site. Problems with the actual EA using too much memory have been recorded. Losing trades in backtesting which do not appear on the Megadroid’s website have also showed up in their reviews. They have also recorded a losing month in May and winning month in April. There are some good articles on the site which are pretty easy to find by using the Forex MegaDroid tags but here are a few to get you started.
Articles can be read Here, Hereand Here.
Here are some blog posts by Forex Megadroid Test
There are clearly alot of winning trades but there are also losses which are good to see as far as honesty is concerned, but obviously not quite “no losing trades”.
The main ‘bit’ that worries me is that the EA according to this user seems to increase the trade size after a loss. This is a very dangerous game to play. Martingale systems don’t work for the independent trader as we will always run out of money before the market does.
On this site Pipbuster (one of our megadroid forum fanatics) clearly states that there are huge differences between different brokers and live or demo accounts on the resulting performance of the EA.
At Forex Investigation it did not get a very good review but more interesting are the comments from the site’s visitors. One highlights the fact that they were not informed that the EA has to be used on MT4 Build 221 or later. This could mean if you broker does not support Build 221 then you will have look for a new broker.
Another poster says “I get a pearler of a good result, or I get a shocker. ”
“The only different with the backtests is the different brokers I have tried it on. All the settings are the same apart from GMT Time which is specific for the broker. FXDD – Great PFG Best Direct – Rubbish Go Markets -Great VelocityFX – Rubbish”
Another not so positive comment..”DROID HAS LOST ME $1000 in the last 2 weeks”.
Again similar to positive reviews you can do a search on google and sift through a lot of the spam and you will see that there are plenty of traders having a real issue with the EA.
Both sides of the argument admit to different brokers = different results, both sides admit when it comes to live vs demo accounts it can make a big difference in the end results.
From a personal perspective I worry about the emphasis that is placed on the metatrader backtesting of this system. Metatrader backtester is notoriously inaccurate some times. In fact if you manual test a simple EMA cross over system using the charts and then back test the same strategy using and EA over the same period you would get different results more often than not. This is obviously a key issue.
The other thing that worries me about megadroid is that there seems to be a vast difference between loss size and winner size. I have read up to 10:1 but most seem to be saying 5:1. Firstly this is amazing as Megadroid retailers suggest there have been no losses. But at a 5:1 ratio a drop in strike rate from the stated 95% to 80% will turn the strategy into a loss making system. That means if it is winning 16 times out of 20 the system will be losing you money. This in my opinion is major issue. It will only take a few losing trades to wipe out a whole months profit or more.
Another thing that bothers me is how the whole marketing is built around increasing your trading capital by a %. A % is a mathematic concept that has no real place in the trading world imo. A % can be manipulated by simply how big you trade. Especially if it refers to a trading system with a large risk to reward ratio. If a system can make 1000% in year with a 5:1 loss:win ratio then it is possible for the system to reduce your account to zero in less than 1 month.
Looking at it another way my Hooya Bands system (nothing special..free to read on the site) for May and June made a profit of 300 FTSE points. Using one contract that is £3000 for the period. Which on a £10k account is not a bad return…but looking over the period in hindsight I could have easily traded 4 contracts and not blown my account. This would have given a 120% profit in only two months. Wow! Amazing! Not really. It would have been stupid to trade that large. Especially now knowing that July was not such a great month and despite being in profit for the 3 months….trading at 4 contracts would have cause serious harm. And this is with a positive win to loss ratio. So in short the advertised percentages are absolutely meaningless in my opinion.
There are plenty of things that bug me about the advertising of this product but I am limiting this review to the 3 questions I mentioned at the start of the article.
To answer the first question you only have read some of the links to see there have been losing trades for megadroid traders. They can hide behind the claims of “your metatrader is not set up properly” but even positive reviews have experiences a loss (or two) so why no admit it?
The second question is a bit pointless as %, as mentioned, is pretty useless. But even taking that into account I have not found anyone willing to say they have made 1000% on a live real account and prove it with their broker (non mt4) statements. This is a major hurdle in “proving” the worthiness of such a trading system.
As for the strike rate, some say they have 95% some say “It has a winning rate of 85%”. Again it seems everyone is getting something different. And as stated there is a huge difference between 95% and 85%. It’s only 2% away from being a loss making system. That means only an extra 2 losses out of 100 and the system loses.
I think it is clear to see that Megadroid does not perform the same for everyone…which in theory it should given their claims in my opinion.
The fact that there are so many issues and this EA has only be on the market for 4 months is also a concern. I do admit there are some out there that claim to have had no issues with the EA and performance is as stated but they are few and far between from what I can see.
Does magadroid do what it says it should on the tin? Absolutely NOT. Could it make you some money? Yes, maybe..but for how long. Any decent trader or mathematician will tell you, you won’t last long in the markets with a trading system that has such a large risk to reward ratio. So I think given time you will see the negative reviews in forex megadroid increase as their accounts decrease. It seems a common pattern with most EAs on the market.
Would I part with my money to use the megadroid EA? Well ,given the risk to reward ratio and the number of trades the EA makes I would suggest any trader could create such a system themselves. So why pay for one?
They do offer a 60 day money back guarantee but given a strike rate of 80% (which would create an account loss) you may not get enough losing trades during a 60 day period to “prove” that it doesn’t perform as stated.
There are already open source versions of the system on web if you look hard enough and I am sure that given time there will be edited versions of the code on the forums and possible improvements made to it. So waiting maybe an option. I certainly won’t be buying it as I feel I can perform as well at the EA whilst taking on less risk. Why take on more if you don’t need to?