In theory, FAP Turbo program is supposed to make money for you. It is an expert advisor written in the MQL4 language that runs on the metatrader 4 platform. It was written by a group of programmers, and Forex traders. For a small sum, their website promises to make hundreds and thosands of dollars for you while you sleep. This is unfortunately no longer true. Years ago, back when Fapturbo was new to the market, yes it did make people rich. It did deliver on its promise, and many people profited from the complex algorithms designed by the Fapturbo team. With a small investment of a few hundred dollars, Fapturbo could make it grow to thousands within a few months. Now, the story has changed for Fapturbo.
You're probably thinking how a successful Forex trading algorithm can switch from a HUGE success to a HUGE failure in a few years. The irony is that Fapturbo's success was its ultimate undoing. Over fifty thousand people worldwide bought Fapturbo. Fapturbo is designed to trade during the quiet periods of the Forex market. This generally means it trades in the middle of the night when the New York market is closed. These are the default, and recommended settings of Fapturbo. A quiet Forex market means lower volatility, and fewer traders.
You're probably thinking how a successful Forex trading algorithm can switch from a HUGE success to a HUGE failure in a few years. The irony is that Fapturbo's success was its ultimate undoing. Over fifty thousand people worldwide bought Fapturbo. Fapturbo is designed to trade during the quiet periods of the Forex market. This generally means it trades in the middle of the night when the New York market is closed. These are the default, and recommended settings of Fapturbo. A quiet Forex market means lower volatility, and fewer traders.
In the middle of the night, the Fapturbo algorithm detects a profitable scalp coming up. Scalping involves buying and selling currencies within mere seconds, or minutes. The profits are small, but if you add many small scalps performed over a few hours, the profits add up to a much larger sum. Scalping requires quick trades, and small profits. Years ago, Fapturbo owners could jump in when the market is quiet, scalp a few dollars, and jump back out without making a dent in the Forex market. The world wide Forex market is huge! It's the biggest market in the world. Over ten times bigger than America's stock exchange, it's impossible for any one company to control the Forex market for any significant amount of time.
Now, with over fifty thousand copies of Fapturbo floating around in the world, if each copy was trading the recommended currency with the default settings, fifty thousand orders would be sent to the brokers to execute. Remember that each order can be as low as 0.01 to tens of lots. Each lot involve trading 100,000 of the currency. Multiply that again by fifty thousand copies of Fapturbo. That's orders totalling millions of dollars trading the broker has to execute. Naturally the brokers can't execute them all at once, and definitely not at the same price. The price difference between the first executed order, and the last executed order could be many pips. Since scalping involves sneaking away with only a few pips in a trade, the difference of the executed price could mean a profit of $2 could turn into a loss of $2. Add that up over tens of trades in a week, and that's a few hundred dollars loss right there.
Another downside to Fapturbo's success was the brokers' complaint to Fapturbo about the volume of orders hitting them at the same time. They were struggling to cope with the volumes. Fapturbo in response changed their algorithm so each copy of Fapturbo would have a random number generator so the orders were staggered over a certain time. This added tweak to their algorithms doesn't bode well to back testing versus live trading. Back testing involves testing the expert advisor algorithm against historical Forex data. This can assist in giving an indication of how profitable, or how badly an expert advisor can perform. There are many arguments against back testing. The most notable, being that the past does not necessarily represent the future.
0 comments:
Post a Comment