Having backtested Fedora FX… I thought it would be a good idea to send back my result to Tom first and allow him to comment on it first before I write my ‘low down dirty Shane’ about it.
Tom has given me two EA, one of it is for GBPUSD which the performances is being advertising on his site while the other EA was for USDCAD. So I started with GBPUSD, while backtesting result for GBPUSD was excellent from 2008 to May 2009..
(Click on graph to view statement)
Much needs to be said for USDCAD…
So discarding USDCAD… I push the backtesting results for GBPUSD to 1999… And I was pretty sad with the results
With my disappointing face… I wrote to Tom and ask him to comment about it…
Below is is reply which he commented
Tom uses Fibonacci, within his EA… and so far he is the first person in the commercial EA world to use it… correct if I am wrong please. And he mentioned that the data may not be past through the right way… So it needs to be done month by month… I guess one of the reason why he posted his backtesting statement month by month…
How true is this… I am not sure… While I think it would be interesting to do month by month backtesting result. I am just to lazy… 
I know I know… one can’t be lazy… but but but… I see what I can do.
Anyway, you can check his mt4stats live results here… http://fedorafx.mt4stats.com/
Tom is also involve with IBFX contest, you can find his nickname ‘FedoraFX’ on the top 100 (results changes everyday since open positions are being taken into the gain calculation to create ranking) So which means there is an amount of credibility to his EA. Like so many EA out there… this is the only way to make you name into the EA world. Enter a contest and see how well you fair.
One thought… if it’s really good. You can be sure that this EA will be in the sharing zone soon. And people will copy it…
Anyway, martingale strategy somehow or rather appeal to me… Appeal to me so much that I would take a quick wank over it… Must be my gambling days with roulette systems.
Like Cyborg EA… Backtesting results was $hit but forward testing was great! (So far that is) I have yet to see a dip which I am keeping my fingers crossed that it does not happened.
So should I give this the benefit of the backtesting doubt and also dump it into my live account? Now since my IBFX seems to be a martingale account. It would be interesting to use Fedora FX on my IBFX account too…
But here comes the problem… IBFX complies to the NFA hedging ruling. So I have create another account with IBFX in order for me to trade Fedora FX especially on GBPUSD since Cyborg EA also trades that currency pair.
So while I am in the midst of sorting that out and also get my EA encoded to my IBFX account… I leave it to each to it’s own to see if this EA would prove interesting for you to try out.
Oh… as my promise to the author. You will not be able to find this EA in my library.
http://fedorafx.mt4stats.com/
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
maybe you should open new blog:” How to wipe out my account as quick as possible with commercial EAs”
Fellow Traders, we already send Casey and email, but also wanted a chance to share what happened in addition to what Casey would like to share. The USD/CAD trade should have never been entered in. We have live trading accounts on MIG, FXDD, FXCM, and IBFX. IBFX was the only account that placed the trade. At first we thought it was the broker, but upon further investigation, we learned that the EA was turned on at the wrong period/time frame. So the Fib was drawn incorretly, causing this trade to enter. (LOL It was only a difference of 10 PIPS!) We will be putting together a detialed write-up on how this happened. Thankfully, none of our customers exprienced this situation. We still believe in our EA and do not doubt it’s abilities. Thank you. Fedora FX Team.
I’m not too sure it’s worth having a wank over! :O
The backtest data does sound a little odd. It would be great if someone could verify this?
As for the use of a quick Martingale. Well it’s all very well saying it you’ll never have 2 in a row but when it does you’ll probably be wiped out. In my experience in fx – if it’s possible it’ll happen some day.
Despite all that this EA does look interesting. However, I wasn’t too keen on their policy of users having to pay for upgrades though.
Great blog btw
M
the MM of the system is so bad and overleveraged, its only a question of time to wipe out the account. They blame now ibfx for the bad performance LOL
Clueless vendors selling products to clueless customers, thats the hype of the industry….
Tom did mention to me that when using this EA, there is an instruction for me to only switch on the EA at a specific time… I have to search back my email and see how it would fit into my trading style with this…
I again agree Martingale Strategy is pretty dangerous… They say no pain no gain… the question is whether you can take the pain of loss and be satisfied with small gains…
Sorry Tom… Timing was not on your side I guess… you have to defend this on on your own…
I can only support by relaying information… and testing it on my $200 live account… Actually come to think of it, it’s like spending $200 in a casino with a martingale strategy on forex rather than roulette….
its not about the timing..
1) Central banks and other big dogs move the market and they give a s$%t about Fibonacci. First mistake of the EA.
2)Default money management of the EA is absolutely wrong, especially while using exponential lot size increase(martingale). Second (BIG) mistake
3)Profit/Loss ratio is negative. Third mistake
the complete formula for a failure…
Tom, as it happens a lot of other people got caught and lost out as well. they are experienced and had done the correct settings. I noticed -$4,500 before the stats page was wiped and restarted. It was going well at $1,800. Needs to have the logic looked at …
I got this EA (ok I’m a sucker!) but it did look interesting and the author Tom is very quick on the support.
Going back to this Martingale strategy to recover losses. There is a day of trading on the 17th. June 2008 which wipes out the test account when using 1 lot on with $10k. It’s nothing to do with the querky nature of MT4′s tick generation. This was a big move of 230 pips. The EA tried 3 sells of 1, 2 and then 4 lots before the account got wiped.
Even when it was dangerously low it continued on without a thought to margin calls and placed a stop trade for 8 lots as well. It definately needs some MM.
So setting the lots down to a size where it doesn’t wipe out a $10k account (0.5 for instance) it does manage better though.
I’ll have to see what Tom says about it handling a repeat of that days action.
M
Martingale is fine on some EAs (NOT ALL, but some). Cyborg for instance is fine. It has good logic. The trouble is the STARTING LOT SIZES. Just start low and allow for a worst case scenario of 4 double ups .. theres a chance of even more theoretically… — the most ive had with cyborg is 3 compounds and been in trade 8 hours… by the time it hit that 3rd compound.. that was what id normally trade anyway..i start at soemthing substantially lower and use fixed lots not the money management lots..
Guys if you get greedy you will be always caught, it doesn’t matter if Martingale or not. Use 0.1 on 10K and sleep sound! That’s the answer to your worries.
Hermes