Thought I would take a break from backtesting and write a piece on this. This morning I have been getting a lot of email alert about Forex Derivative EA. How it is a scam and what not?

Firstly, thank you very much to everyone who wrote in to me alerting me on this. While I don’t think I am in the business of uncovering scam (it happened by accident) I do feel that it is something that comes with this business of Forex EA or any other online or internet business for that matter.

Now I am not able to verify that it is a scam… but as the forum suggests

http://www.tradingsystemforex.com/commercial-expert-advisors/1530-forex-derivative-2.html

This derivative EA uses  a code to manipulate backtesting results to curve fit it perfectly. While forward testing might not yield the same results… It never would anyway… but the point is…  It is deceiving and thus makes it unethical.

One of the reason I suspect, the author uses this code is to run away from the 56 days guarantee. Once the 56 days guarantee is over, the author keeps the money. And you get jack shit… You see, some will back test it… and if the backtesting result is good, they will forward test it… and forward test it take time. If one is not vigilant enough… boom… you will miss the guarantee dateline.

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