An Update Regarding Plimus

Plimus have suspended the accounts of Forex EA sellersMany of you reading this will already be aware that, as of a couple of days ago, Plimus decided to suspend accepting new orders for Forex related products.

Without prior warning, on the 10th January, Forex vendors selling their wares through the Plimus network received an email similar to the one below:

The credit card associations (including Visa and MasterCard) are increasing their scrutiny of merchants selling products within a number of online segments. Affected market segments include, but are not limited to, the following:

- Online auctions
- Foreign Exchange (FOREX)-related products
- Media
- Poker chips and other virtual currency

As you offer products that fit within one or more of these segments, Plimus must now undertake a detailed and exhaustive review of your account, and its compatibility with the Plimus platform. This review will take approximately 30 days; at its conclusion, we hope to be able to advise you that we can continue to provide e-commerce services to your business.

During the period of this review, we must undertake two steps. First, the payout scheduled for the 15th of this month will be suspended for a period not to exceed 30 days, pending our confirmation that all transactions will be honored by the card associations. Second, your account will be suspended as of Thursday, January 12th, which will mean that no further transactions can take place until further notice.

We recognize that this represents a significant business challenge, and apologize for the inconvenience. If you believe your account should not be considered to be within one of the stated market segments, or if you have any questions of concerns, please contact Vendor Support directly."

So, what does all this mean?

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Fast Forex Millions - New EA Coming Soon

Fast Forex MillionsI hope to have a copy of the new Fast Forex Millions Expert Advisor in forward test at MellyForex very soon.

Although the EA hasn't been released yet (official release is an as yet undisclosed date sometime this month), it certainly looks very interesting and suggests great potential.

Fast Forex Millions claims to work on no fewer than five currency symbols, it's a non-scalper and the suggestion is that it will work with any broker. The backtest summaries on the website's homepage suggest a win rate of around 60% and an average winning trade size which is greater than the average losing size. I'll certainly be looking to put it through its paces and reporting back to you with my findings and views.

Watch this space!

Forex Thor EA - Expert Advisor in Forward Test

Forex ThorIn Viking Norse mythology, Thor was a hammer wielding thunder god, and it's my best guess that this old mythology has played a big part in the naming of the Forex Thor EA which I've just put into forward test at MellyForex. Was it really that difficult to make my deduction by looking at the streaks of lightning and the hammer which are clearly displayed on the Forex Thor box? :roll:

Anyway, now we've established that Inspector Clouseau needn't worry about the safety of his employment, please allow me to tell you what little snippets of information I know about Forex Thor.

Firstly, the Forex Thor EA is a scalper which, at the time of writing this article, is brand new to the market. It runs on the 30-minute chart timeframe of the EURUSD symbol, and I have to be be perfectly honest and say that I'm not entirely sure what logic it uses to get its mojo. The video on the developer's website talks about money flow, so I can only hazard a guess that trade decisions are volume related.

The literature suggests that the EA employs a combination of three different strategies, and each strategy can either be used independently of the other two, or all three strategies can be used together concurrently. From the developer's own backtests, it looks at first glance that employing all three strategies together may render the EA as NFA non-compliant in terms of FIFO. The backtests certainly showed Forex Thor as having more than one trade open at a time, and the stop-loss handling didn't look to me as though it complied with FIFO. It's my initial suspicion, therefore, that US-based traders who want to run Forex Thor with all three strategies will have to run the EA on three separate broker's accounts, with only one strategy per broker. Obviously users in the rest of the world won't have any problem trading all three strategies together.

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Orange Forex Robot - Expert Advisor in Forward Test

Orange Forex RobotHere in the UK, we have a mobile telecoms provider called Orange whose advertising slogan used to be - "The future's bright, the future's Orange". I certainly hope that the future will be bright for the Orange Forex Robot, which is the latest EA to go into forward test at MellyForex.

Is it just me, or are the names of these EAs becoming increasingly obscure?

Anyway, I'm not the kind of person to allow a name to cloud my judgment, so I'll quickly tell you a few important snippets of information about the Orange Forex Robot.

First and foremost, it's a scalper which works 24/5 on the 5-minute chart timeframe of the EURUSD currency pair. I already have several EURUSD scalpers in forward test at MellyForex, but they generally apply extensive filtering which means they may typically trade only once a day.

What's different about the Orange Forex Robot, however, is that the backtests on the developer's website suggest that this EA is a reasonably high frequency trader. The strategy test from January 2008 to date shows around 12,000 trades in under 4 years, which equates to 10 or 11 trades each and every trading day.

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Forex Cleaner EA - Expert Advisor Review

Despite having a rather unusual name for a Forex trading system, the Forex Cleaner EA has shown much early promise since I put it into forward test at MellyForex.

Some of that is down to good fortune in timing, of course, as I also have EAs in forward test which started badly and are only now showing their true potential after several months of sub-standard performance. Likewise, it's only fair to say that I also have EAs which have started well before going into terminal decline. In the case of Forex Cleaner, it's been in forward test for little more than a month at the time of writing this review and, in that time, it has zoomed up towards the top of my leaderboard where it currently sits proudly in third place.

Forex Cleaner

In terms of its modus operandi, I suppose Forex Cleaner could be described as a 'part-time swinger'.

Before my lusty male readers jump to false impressions that this article is all about wife-swap parties, it's probably best if a describe my term of 'swinger' in greater detail. For a start, swing trading is the process of identifying short-term tops and bottoms in the market, and trading the move between those tops and bottoms. As soon as a trade in one direction is exited, the trader generally hops back on board in the opposite direction in the hope that he can profit from the price reversal. Using this approach, trades generally follow a buy-sell-buy-sell pattern.

Forex Cleaner attempts to identify market tops and bottoms for its trade exits, but also applies some additional filtering which means that it won't take every entry unless those additional criteria are met. In other words, Forex Cleaner only swings part-time. What did you think I meant?

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Forex OverDrive EA - Expert Advisor in Forward Test

The Forex OverDrive EA is another Expert Advisor that I've recently put into forward test at MellyForex. If it shows some promise once it's been in test for a month or so, then I'll consider a full review of the EA.

Forex OverDriveThe EA itself is a non-martingale scalper which runs 24/5 on the 5-minute charts of two currency pairs - EURUSD and GBPUSD, and it appears to get its trade signals when about 500 different indicators are all standing up like soldiers and facing the right direction. Hey, 500 might be a slight exaggeration of the number of indicators used by Forex OverDrive, but I'm sure that readers will understand the concept that this EA is being driven by a shedload of different indicators.

Forex OverDrive sets a fixed stop-loss (default setting is 328 pips) and take-profit (default is 25 pips) once it's entered a trade, and it then trails a stop-loss to exit if or when the trade has moved into profit.

A consequence of the EA's high risk/reward ratio is that the EA should enjoy a very high rate of winning trades, and some forward tests on the developer's website suggest that the EA actually wins around 95% of all its trades. The downside of this high risk/reward ratio, however, is that a full stop-loss being hit will wipe out the entire profits of the last umpteen trades. I ran a quick analysis of the developer's forward test, and it suggested that Forex OverDrive's average winning trade is around 14 or 15 pips and its average loss trade is around 260 pips, giving a risk/reward ratio of approximately 18. That same analysis also suggested that the EA should trade around 7 or 8 times each week on both its currency symbols, so it's relatively easy to work out that it's going to take around two or three weeks to recover from one of the big losses.

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MellyForex October Update

Halloween PumpkinDespite recent unsettling effects on the markets caused by global economic woes, and the unending advice suggesting that automated trading systems should be turned OFF completely until after the dust has settled, the number of profitable EAs in forward test at MellyForex has increased over the last month, from seven at the end of September to no fewer than twelve by the time everybody was out 'Trick or Treating' over Halloween.

Admittedly, I've got more robots in forward test now than I had a month ago, but I find it particularly refreshing that there are a couple of EAs which I've reviewed previously that backtested well, but hadn't been performing in forward test. This month they've made it into the top part of my leaderboard!

The point here is, I believe, that it's very difficult when you look at a 10-year/3,000 trade backtest curve which has been condensed into a relatively small 820 pixel wide GIF image, to fully appreciate that the backtest might show the EA having endured periods lasting 6 months or even a year during which it may not have been profitable. It's understandable, therefore, that the best EAs aren't always going to return a profit immediately they come out of the box. This is highlighted by the Monte Carlo simulations that I conduct within my reviews which suggest most EAs only offer a 30% or 40% probability of an account balance never dropping below its initial deposit. In other words, as many as 60% or 70% of EA users are going to have to suffer a bit of pain before they get the gain!

For what it's worth, I sometimes get the impression that a lot of people just look at the start and end balances of a backtest equity curve, but don't look closely enough at the shape of the curve in between. This leads to systems being dismissed unfairly after two or three bad months, simply because the average EA user doesn't fully appreciate either the risk involved or quite how much patience is needed to trade successfully.

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Forex Combo EA - Expert Advisor Review

It's an unfortunate fact of life that I don't have the necessary time to fully review every EA that I have in forward test, and I therefore have to be selective about which Expert Advisors I do choose to analyse.

Forex Combo EAThat can be loosely translated to read that I'll probably only review something if it's either profitable or if I like it a lot.

By way of an example, I've had the Forex Combo EA in forward test for over three months now, but it's only recently that it's moved into profitability and I feel it's become worthy of a full review.

The Forex Combo system gets its name because it is a combination of three separate EAs which have been merged into one. In fact, that's not entirely true, because users get one EA which is designed to work on cable (GBPUSD currency symbol) and a second EA which works on fiber (EURUSD symbol). The two EAs are essentially the same, but their parameters use different optimum values for each of the two symbols.
Each of the three strategies acts independently of the other two strategies, and users have the option of running either all or any of the strategies they wish. None of the strategies are particularly prolific traders in their own right although, with all strategies combined, the EA should trade on average once a day on each of its two currency symbols, and I guess that the strategies have been merged into one as a way of providing better value for money from the product.

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