The Forex Robot World Cup might have seemed like a shameless cash-in job with the football World Cup taking place in South Africa, but it actually was a very worthwhile exercise and a necessary one too. The market is flooded with robots that claim they can earn you 300% or more Return On Investment (ROI) and it is hard to choose between them all. What the Forex Robot World Cup did was eliminate software that did not cut it under live testing conditions, leaving the public with a smaller, higher quality pool to choose from.

The incentive

There was an estimated $150,000 available in terms of prize money which was a major inducement for any programmer that thought their machine is up to scratch. The process involved trimming 329 robots to 24. This was done through careful inspection by experts in the field of Forex trading. The chosen 24 were then allowed to compete against one another by trading on the live market.

The importance of live trading

This live trading is why the Forex Robot World Cup is so important. Various software is marketed by telling would-be traders that their product performed heroics on the Forex market. The main problem with this however is the fact that these figures were taken from back testing that was only performed in demo mode. In other words, the profits that these machines claim are non-existent. Producing a great performance in demo mode is absolutely useless as this does not give you an accurate reading of what will happen during live testing.

Two months of testing

Not only that, but many of these figures were seemingly plucked out of thin air which makes those claims of a 700% ROI seem pretty hollow. The results of the World Cup which will be shown are proof of that. The Forex Robot World Cup allowed everyone who was interested to see exactly how much money a robot made during actual live testing over a period of two months.

Head to head

To ensure fair testing, each robot was given the same broker and amount of money which guaranteed that no robot had an unfair advantage. Aside from the excitement of having robots going head to head, the World Cup feel was really accentuated by allowing the public to watch what was going on in the form of live updates from each robot every 15 minutes. A simple graph was designed that allowed people to see which robot was winning and what the equity curve was.

And the winner is

In the end, Drazen Ziskovic and his robot ‘LMD Multi-Currency’ was the champion gaining an impressive 145.60% ROI beating off ‘HiRider’ who gained 88.11% into second place. This tournament showed that very few robots actually make you a profit. Only 10 of the competitors made any profit with only the top 3 making more than 20% over the two month trading period. This shows that the ridiculous figures other robots have claimed are completely false and also lets traders know how difficult it can be to win on the Forex exchange.

The Forex Robot World Cup showed that live testing is the only way to truly gauge the quality of Forex software and Ziskovic’s winning machine is available in small quantities to interested traders.

For more information on the Forex Robot World Cup click here

Filed under: Forex Robots

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