I recently acquired a copy of a new robot called Forex Overdrive for testing and review.

The first thing I noticed is that from a settings perspective, it reminded me a lot of the early Euro-Blaster versions. I asked the author about this, and he said it is indeed similar. Specifically, it has a default take profit level of 25 pips and a stop loss level of 328 pips. These can be modified, of course, but that would likely take a bite out of the robot’s winning percentage. With such a poor risk-reward ratio, the robot has to win around 93% of the time just to break even! That’s awfully high, and I have my doubts as to whether that could be sustained for any substantial length of time.

Just like the early Euro-Blaster versions, my guess is that this robot can occasionally churn out some very impressive results, maybe winning 20, 30, or even 40 or more trades in a row. That makes for a nice looking chart. But then comes the dreaded loss. In an early test, my demo account made a 15% gain in about 15 days before it hit a stop loss sending it back to about a 1.5% gain. Unfortunately that is just the nature of the robot. There is a chance that you could run off an impressive streak of wins and build up your account quickly, but there is equally a chance that you could hit two or three (gasp) stop losses in a row and really do some damage to your account.

The risk can be lowered via the settings so that it trades smaller lot sizes, but of course that limits the amount you will make during the stretch of wins. Like all robots, you would need to find a risk level you are comfortable with.

I’ve begun another demo account on GoMarkets. I am trading on the EUR/USD and GBP/USD pairs, which is what the creator recommends. I have set the risk level to 5% (the default is 15%). Let’s see how it does…

For further information: Forex Overdrive Website

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