Signal Provider FOREXTECHNO EURUSD

Last update: 02.01.2012

FOREXTECHNO is the expert group specializing in trading at financial markets. They have several different strategies including EURUSD_LT and SYSTEM_A. Despite the fact that both of these strategies proved to be reliable and profitable, we will have a closer look at one of them: EURUSD_LT. SYSTEM_A strategy is very similar to EURUSD_LT but has a lower profitability indication.

Expert’s description: "We professionally trade in the FOREX market having a proven track record since 2006. In our trading we use only mechanical trading systems of our own design tested on 10 years of history. EURUSD_LT is our old and reliable trading strategy, which used to be our flagship until recently. EURUSD_LT represents diversified portfolio of mechanical trading systems trading EURUSD currency pair only. All systems, included in the said portfolio are mostly intraday systems trading only EURUSD by means of only pending orders. Every moment all pending orders and opened positions have tight Stop-Loss, restricting risk per a trade by as low as 1% of deposit. Take-Profit usually exceeds Stop-Loss by 2-3 times or more" This expert has been trading for over 16 months, and the investment volume is over 3.000.000 dollars. Trust level for FOREXTECHNO is high as about 61% of the investors recommend this commercial expert. The graph represents a saw-toothed rise that is typical for mechanical trading systems.

You should certainly pay attention to the downturns in the graph of profitability. Each of these falls is no more than 5% of the general commercial trader revenue though adding eurusd_lt to your portfolio you should be ready to possible temporary drawdown. Inexperienced investors are often scared of the capital loss speed and tend to cross the system out a step before the most profitable top period.

Let’s review the prospective profitability of the system analyzing last year’s results. The level of profit was 3500 pips while the maximum amount of open deals was no more than 5. The amount of deals plays a very important role as the investment we made in the commercial experts is divided by the number of concurrent open deals. One eurusd_lt lot brings $8.000 a year, and this sum constitutes 160% for high-risk portfolios and 80% for moderate-risk portfolios.

Monthly profit graph you can see that the expert has quite stable indications: starting from 250 up to 500 pips each month. The start-up period of the trading strategy functioning is often different because of the necessity to make allowances and change system settings. The expert is dealing only with EURUSD currency pair which makes another argument proving great system reliability.

The important outstanding feature is that this expert has less profitable deals than the majority of ZuluTrade commercial experts. Eurusd_lt generates profit not because its highly profitable deals predominate in number but because of the difference between the income from successful deals and losses from unprofitable deals. The percent of successful deals is 38% while the profit from a successful deal is about 2.5 times greater than the loss from an unprofitable deal. Let’s add an example: the commercial expert has 6 unprofitable and 4 successful deals out of 10 deals. However, those 6 unprofitable deals have 10 pips each while 4 successful deals have 25 pips each. At the end of the day, after 10 deals the balance will be equal to 100-60=40. This is a quite unusual expert but during its work in ZuluTrade system FOREXTECHNO approved itself as a very sustainable partner.

Apart from profitability, one of the important key factors that influence investment stability is the drawdown management (англ. drawdown management). As the drawdown can essentially decrease the investor’s capital, it’s more reasonable to give your preference to the systems with slight drawdowns. It’s important for the commercial expert to track drawdown positions and close them down before they inflict any further damage.

If you do not appreciate high risks and are ready to sacrifice a share of your additional profit to ensure reliable management of your means, pay attention to the drawdown graph of the commercial expert. The drawdown graph lets you see that EURUSD_LT preserves the rules of capital management very thoroughly and doesn’t have any additional losses. This expert is trustworthy but just to be safe you should set a level of loss limit at 100 pips in enhanced settings of ZuluTrade portfolio.

If you judge by the slippage level, the best broker for this commercial expert is AAAfx (taking into account that there are no additional fees for the broker). We put this expert to the lower-risk category with prospective profitability level of 40-90%. This commercial expert is the most suitable for moderate-risk portfolios. Portfolios with moderate risk levels demand a more detailed and accurate drawdown management while high-risk level portfolios demand higher profitability.