GPS Forex Robot Review

Today we focus on a really unusual expert advisor -- the GPS Forex Robot, developed by Mark Larsen and his group.
Now, whatever I'm going to say in the following lines would perhaps not matter to those who have heard of Larsen before. Each time a forum participant mentions his name, it's generally followed by a story of ruined accounts, neglected refunds and crappy software.

Still, I believe it's worth exploring this GPS Forex Robot for the sake of developing a habit of digging deeper into complicated matters -- things that appear bright and shiny on the surface, but are spoiled on the interior.

Let's start with the basics.

The developers of this GPS Forex Robot (version 2) offer it for sale for $149, plus there is a 60-day money back guarantee. Thus far so good -- for this cost, we may expect the expert adviser to match the performance of the Forex Growth Bot, or FGB, which costs $129, and the Forex Invest Bot, or FIB,- $197.

More Details: http://www.socialleadfreak.com/gps-forex-robot-review

The cheesy website promotes the GPS Forex Robot as a true miracle maker. As soon as you apply it to a Metatrader 4 (MT4) account, you will only have to wait for the miracle of 98% winning trades to happen. If that looks too good to be true, that's probably because it isn't.

But let us examine the block-buster asserts further. According to Larsen, a reverse strategy allows fast compensation for losses incurred. Say the robot purchases EURUSD and suffers a loss. As a result, it will instantly open a reverse trade (sell) -- a strategy known as stop-and-reverse. Actually, that's something quite easy to implement in a software -- even by newbies -- so there goes the"genius" of the two programmers (Ronald and Antony) accountable for the bot.

The fascinating part about this bot is its strategy to improve trade contract sizes. When the EA reverses a trade, it raises steeply the trade contract dimensions -- from 5 to 9 times.

Does this remind you of something? To me, this looks like a Martingale strategy, which is a gaming method, in which you begin with a certain bet size, then double it every time you lose and keep doing so until you win, when you return to the original bet size. What's dangerous about this strategy is that it can guarantee specific profits only to gamblers with boundless wealth and there's absolutely not any limit on the maximum bet you can make. But if your wealth is limited, which generally is the case with forex trading, or there's a maximum amount you can exchange (again -- the situation with trading), then you might end up buried under the burden of continuously rising bets without an actual possibility to return your losses. In simple words, if you lose more than once, your account will most likely fail.

Let us explore the backtests to determine how the peculiar strategy of GPS Forex Robot works.

At a first glance, the picture is rosy, as this incredible robot makes drives a first deposit of $10,000 to a net profit of $100,952. Adding to the sequence of positive news, profit trades (89%) outnumber the losing trades (11%). Pay attention, however, that the average profit trade ($219) lags behind the average loss trade ($824)! That is troublesome because a series of losses can get you into a really deep trouble.
The history of transactions is really enlightening, because you may see the odd trading strategy of the robot in action. For example, on May 27, 2009 there is a heavy loss of $919 after buying 1 lot of EURUSD. The robot immediately reverses the plan and opens a market trade but with trade contract dimensions of 6.8. This time it's a winner -- there's a gain of $904, but such lucrative trades cannot be guaranteed.

Forward evaluations: Cradle of Loss

A real account on Myfxbook.com, to which the GPS Forex Robot is implemented, provides us with additional insight about this EA. The trade is with EURUSD and started on May 21, 2012. Since its activation, the account has registered a gain of 153%, which, given the first deposit of $100,000, represents a whopping sum.

The account has not registered a single month of losses since its launch, although the growth rate is gradually declining.

A worrying sign is that typical pips per trade are at 4.6, which hints in vulnerability to changes in market behavior. By contrast, FIB's Synergy FX account enjoys average pips per trade ratio of 13.6, while the ratio stands at 6.6 for FGB's account with ThinkForex.

The risk is low, but since drawdown reaches a solid level of 10%, just like that of FIB and much lower (which is good thing) than the 42% recorded by FGB's account.

The curious part is from the background of trades as once again we experience the stop-and-reverse strategy and the specific version of the Martingale method. The robot applies both approaches when there are particularly heavy losses. By way of instance, after a losing trade (the loss is $10,230) on June 8, 2012, the robot reverses the plan and increases the trade contract size from 11 a lot to 75 lots. In case the robot had suffered another loss like the previous one, but with the increased trade contract size, the whole loss would have shrunk to $71,088.

If you are familiar with Isaac Asimov's work, you should know the First Law of Robotics -- that is, a robot cannot harm a human being. The GPS Forex Robot clearly violates this law. It may be not harming the traders, but it's harming their accounts. It's similar to the Rosemary's baby sleeping in the cradle of reduction. You just don't know when the baby is going to wake up and unleash hell.

The funniest thing is that Mark Larsen appears not to care at all about the strategy used by the GPS Forex Robot. In actuality, he is the single person to have rated this EA with five stars, in his own review of this program. Even if that is the best way to hell.

Know your keywords

Expert advisor (EA) -- An algorithmic trading system to the MetaTrader platform; a trading robot. EA's can either be downloaded at no cost or for a fee, or can be programmed in the MQL programming language.

Backtesting -- Testing a trading strategy on previous time periods through a simulation.

Drawdown - A dealer's biggest loss for a certain period of time, expressed in pips or as a
Percentage of the dealer's profit.
strategy.
Let's say you start with a balance of $1,000, then make a profit of $1,000, and following that lose $500.

Lot - The standardized contract size of a trading tool. A standard lot consists of 100,000

If you are buying 1 lot EURUSD at 1.3000 for example, you're buying 100,000 Euro for 130,000 US Dollars.

Pip - The fourth digit after the decimal sign of a price quote. For instance: if the EUR/USD moves from
1.3350 into 1.3351, that is one pip. Pips are utilised to measure price movement, profit and slippage.

Sponsor Ads

• Ad Space Available - Rent it Now!

Report this Page

Created on Jun 21st 2018 21:13. Viewed 291 times.

Share on APSense

Comments