Forex $ocial Traders
 

           

GPS Forex Robot Trading Strategy Uncovered

Today we are going to focus on a very unusual forex trading expert advisor called GPS Forex Robot. This robot was developed by Mark Larsen and his support team.

To uncover what trading strategy is used by GPS Forex Robot we will use backtests and his past results.works. The backtest is run from October 9, 2007 till January 5, 2012. Currency pair traded is EURUSD.  Robot will be trading one-hour time charts (H1).

After the first look at the backtest results we can be very satisfied with robot´s incredible performance.  The initial deposit $10,000 grew to a profit of $100,952!  Max. drawdown was only 20% which looks like a very acceptable level of risk. Good news seems to continue with 89% of profitable trades while only 11% ol losers. But now whe have to face the real truth. Be aware that average profit from winning trades was $219, while average loss from losing trades was $824!  That is a warning sign as couple of losers in a row can put your trading account in a big trouble.

To make this even more clear we will show one real example of the odd forex trading strategy this robot has been using. On May 27, 2009 the robot experienced a huge loss of $919 after trading a long position of 1 lot of EUR/USD pair. After this losing trade he immediately opens a short position contract with 6.8 lots. That trade ended as a winner with profit of $904, but this clearly uncovers that the GPS Forex Robot is has been using a martingale like trading strategy which can be a big dissaster for your trading capital.

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