Forex Performance Tests - How to Avoid Pitfalls?

[Forex88]

Hi,

While learning the Forex, I want to try Forex Expert Advisor or Managed Account. Even if the proft is small, it's to put my money to make som ROI passively, instead of having them on my bank.

In the performance tests; from the ForexVerified website, they say that one should look for these things:

• The test is still active, or it's stopped just some days ago.
• If the test is stopped, it's wise to know why it's stopped.
• The test duration is at least 6 months.
• The maximal drawdown is should not be more than 30%.
• One should look for the performance over time, not only the averages. If the performance is high in first 6 months, then lost all the time last 6 months. Event the average weekly and gross profit is positive and high, it may be not wise to use that program to invest the money.
• The poinst should be higher than 5

(I personally rely more on tests than on reviews, because some write negative or positive reviews very quickly after a loss or a win, or even there may be affiliates that just want to give a positive review. But still, it can be wise to take a look at the reviews too).

From these things, these programs performs best:

• Million Dollar Pips (the numbers look "too good to be true")
• Trade2FI-Win $500 Profit Every Month
• REV Trader Pro
• Keltner PRO
• Forex Striker

So, let's just setup the accounts, put money on these programs (mentioned above), go to bed and let the money grow. Is that so easy?

What are the (hidden) pitfalls to look for when looking at these performance tests?

 

[Pharaoh]

With any test, don't get excited at just the return. Look at the risks taken. Are stoplosses used? What's the max drawdown?

If you see a good one, follow it for a few months. A lot of tests start out really well, but are based on unstable strategies.