This forex fraud article contains a Forex Megadroid overview, a review of questionable profitability claims, and an objective Forex Megadroid scam assessment. To read more general information about forex trading software fraud click here.
Forex Megadroid Overview
Forex Megadroid is automated forex trading software that operates as an Expert Advisor or EA on the popular MetaTrader 4 forex trading platform. The Forex Megadroid EA was programmed by Hector Lusting based on the experience of Albert Perrie and John Grace, a team of former professional commercial bank forex traders with a combined 38 years of forex trading. The vendors’ website claims the trading robot incorporates revolutionary Reverse Correlated Time and Price Analysis or RCTPA artificial intelligence technology
Questionable Vendor Profitability Claims and Issues
The vendor claims hypothetical back-tested trading returns on a $50,000 initial deposit achieved during the period of 4/30/2009 to 3/25/2010 using the EUR/USD currency pair as follows:
- Using the most conservative risk level of 1, the EA returned a net profit of $55,034.12 which represents a claimed annualized potential profitability of 122.11%.
- Using the least conservative risk level of 7, the EA returned a net profit of $385,238.84 which represents a claimed annualized potential profitability of 854.79%.
The vendor also claims the robot is programmed to perform well in any market conditions with a questionably high trading accuracy of 95.82% winning trades.
Forex Megadroid Scam Assessment
Is a Forex Megadroid scam going on here? Perhaps, since profits seem generally lower than its vendor’s website advertizes in independent live and demo trading tests. Furthermore, while Forex Megadroid may perform better than many commercial forex robots in practice, it does not trade very often and then only on one currency pair.
Basically, Forex Megadroid, like many other forex robots, was back-tested by its vendors over historical pricing data to come up with outstanding profitability claims over a carefully-selected time period, set of currency pairs and choice of setup parameters. As a result of this optimization process, the use of different parameters or currency pairs may generate future results that can be nowhere near as good as the live or back-testing returns.
Usually, people who purchase these robots test them by having them trade in a demo account during the guaranteed return period. If the results look disappointing, they then return them via Clickbank.
Also keep in mind that sometimes demo traded results are superior to live trading results. This is especially common for scalping systems like Forex Megadroid’s EA which can be sensitive to dealing spreads and commissions.
In general, we do not recommend that forex traders use Forex Megadroid or any other forex trading robots. Basically, it would be a mistake to view trading forex as a means of getting rich quickly. Instead, seek to learn to trade forex profitably and on a consistent basis by inventing and improving upon your own personal trading plan. Be aware that trusting the trading decisions of others with your funds has not been shown to be profitable when trading forex or in other life situations.