Mega-Droid Review

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Types of Robot : Scalping Robot
Review Updated : 1st January 2010
Broker Platform : Metatrader 4 (Work on both 4th and 5th decimal digit brokers)
Back-test and Forward Test Generated With : Alpari UK
Price : $97
Refundable: 60 Day Money-back Guarantee

Pair: Eur/Usd 1hr

1. Money Management

Yes. Allow you to specify the amount risk per trade.

2. Draw-down

Table: Relationship between amount risk per trade with max drawdown table

over 12 months from 1st July 08 – 1st Aug 09

Conservative Settings 2% per trade

The Lowest draw-down that brings the most profit will be somewhere between risking 1- 4 % per trade. It will be recommended to most people to trade with a risk setting of 2% a trade.

Moderate to High Risk Settings 4% per trade

If your can tolerate a higher draw-down, 4% risk per trade may be a setting you can use to maximise your profit using this system. One must be aware that with a risk of 4%, you must be prepare to lose close to 25% of your equity in your account.

That means losing $2,500 in a $10,000 investment account. And it is not advisable to risk much more than 4% because the draw-down one would experience will increase significantly without any increase in percentage of profits earned.

Analysis Table with 4% Risk Per Trade Over Various Period

(All tests are done with recovery and aggressive settings turn on.)

Max Drawdown

With 4% risk setting, the highest draw-down experienced (19.19%) was in 1st Jan 08 to 31th Dec 08. From the risk vs draw-down stats and this analysis table, we observed that the max draw-down is about 20%.

Max Consecutive Loss

3. Systems tell us to expect a high probability of a win after 3 losing trades.

Winning Trades (%)

Average winning trades is 89.81% for the past 5 years.

ROI

Average ROI for the past 5 years is 31.88%. Not a single losing years is recorded. Very high probability of having a profitable year.

Trade Analysis

Order Type = Market Order

Take Profit = Uses Dynamic Take Profit Level (no fixed TP)

Stoploss = Uses Dynamic Stoploss Level (no fixed SL)

Average Profitable Trade = $41.36

Average LosingTrade = $193.40

It takes 5 wins to recover 1 losing trade.

3. Ease of Use It comes with a manual and all paremeters clearly explained.

Paremeters to set are

• Recovery setting (Double Your Risk After a Losing Trade)
• Aggressive Settings
• Risk Per Trade
• Auto GMT offset included

It takes less than 5 mins to setup the expert advisor into the metatrader platform.

4. Honest Result

Key Ratios For Comparison

1. Max Draw-down
2. Max Consecutive Loss
3. Winning Trade (%)
4. ROI (%)

Compare these ratios with the analysis and researched done by FxEAReview Team.

2004-08 Back Test Results

Backtest Results Yr 2004-08

Year 2004-08 Equity Graph

For individual years and more detailed back-test results

Click Here to Download

Forward Test Result

Update 23th Nov 2009: Conservative settings are used trading this strategy and we are trading with 2 charts using advanced droid tactics strategy.

Update 23 th Dec 2009

We are recovering from the loss sustained in November. Trading conditions has improved and we have not encountered any high spread issue in the month of december 2009. Grid trading robot is introduced in this update. We are looking forward to better results in 2010. Trading will stop on Christmas day and resume in Mid January 2010.

1st January 2010 update

Megadriod has perform quite well for the 1st half of the year of 2009 but with the introduction of flexible spreads by the broker, we did not have several trades as many trades were filtered out due to high spreads during the second half of 2009. Thus it affects the performance of Megadriod. So we cannot really judge how well Megadriod have perform up to its expectations. So far when Megadriod does trade, the performance is good with mostly winning trades but judging by the high spread issues, we need to find other brokers to make Megadriod work to its full potential. Nevertheless, Megadriod seems to be a consistent performer with relatively good  results but only if we can find the solution to the high spread issue. We will update you as soon as we can find a good solution to the spread issue.

Click the Analyse Tab For Key Ratios

Click Here to View Forward Test Results (Will be shown when account is created)

5. Other Features

Stealth

Broker will not be informed of the true take profit and stop loss level and this will reduce the effect of broker manipulation.

Aggressive

When enabled, Megadroid trades with 2 strategies at the same time, 1 conservative and 1 aggressive.

Recovery Mode

Having a very high winning percentage of trades, this function when enabled will doubled the risk of all trades in the event of a losing trade to recover the the loss until all the loss has been recovered.

6. Weaknesses (If Any)

Many trades are not opened due to high spread.

Use brokers with low spreads like fxcbs or imfx to trade this system

7. Support

Owners are contactable via email. Mega-Droid has been updated 3 times since the launch.

No forum

8. Profitability

ROI (over past 5 yrs) = 31.88% (Max Draw-down 19.19%)

Average Profitable Trade = $41.36

3 wins will have recover back your investment in Mega Droid.

Not a single losing year is registered in our back tests. Winning 31.88% and risking a 19.19% draw-down is an investment we believed will be worth the risk.

Summary

System trades with a very high accuracy. It makes very few trades and this suits beginning traders extremely well as they will not worry about losing trades and learn the basics before moving on to system that have frequent trades.

Recovery settings works very well with this strategy as it makes very high accuracy trades, doubling the risk after a losing trades tends to make back the loss faster. Time spent in a draw-down will be short.

Update 6th Nov 2009 : Many trades are not opened due to high spreads during Asian market conditions. As a result, selected brokers must be used to take advantage of the full benefits of this system.

Rating

7/10

(All tests are generated with Aggressive and Recovery Settings turn on.)

Warren Seah

Feel free to use this article on your website or ezine as long as the following information about author/website is included.

Warren examines commercial trading systems. He analyses to uncover good systems which bring in consistent profits in the long term.

To read more about these research papers and analysis, go to

http://www.FxEAReview.com

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