There is a new website called FXMultiTrader.com that promotes a profitable FOREX trading system that has some really nice features. Unlike most trading systems, you don’t have to buy some software and just hope that it works. Instead, you create a trading account at one of the top brokers in the business (FXCM) and use a new system they recently put in place to trade your account automatically. Instead of paying up front, you pay a very small commission per trade. The system has been trading less than a month and has already achieved an 8% increase in equity with very small drawdowns. This is a long term system that uses lower leverage technique to build equity steadily without exposure to huge amounts of risk. This is definitely a system to watch.
There are several reasons this system this looks good to me. First, you don’t have to look very far on the internet to find advertisements for FOREX programs that supposedly make you a bunch of money on autopilot, but these programs don’t work over a long period of time. Most of these programs fall into the category of scalpers, which means they take small profits on lots and lots of trades. They have a win frequency of 95% wich looks great until you also discover that the a signle trade loss in such a system often is 20 times larger than the average amount of a win. So if say 19 out of 20 trades wins $20 but then the next trade loses $400, simple math will tell you this isn’t a very useful strategy over the long term. Unfortunately, most of these systems show testimonials from people who have used the system only a few weeks, so they have not yet experienced the huge drawdowns that can occur with a couple of untimely losses in the system.
Furthermore, these programs, also known as Expert Advisors (EAs) or trading robots, are actual programs you must purchase for anywhere between $100 to over $1000. These programs are designed to work with another software system, generally a trading system called MetaTrader 4 (MT4). In order to use the software, you must have your EA hooked up to MT4 and you must have both programs running on a computer that is connected to the internet 24/7. So you must pay money up front to purchase the system, hoping that it will work, and you must pay recurring fees to run a Virtual private Server to run MT4 plus the EA 24/7.
In contrast, FXMultiTrader is promoting a system run by established FOREX broker FXCM. Their new FSS system allows traders to select a portfolio of possible trading robots and have them traded by FXCM automatically. There are no up front costs, nothing to buy, and no hosting costs. Instead, FXCM makes its money by charging a very small commission per trade. FXCM makes its money as an introducing broker by getting a referral fee from FXCM. This fee is a recurring commission per trade made by a new client. FXMultiTrader sweetens the deal for the trader in two ways. First, FXMultiTrader has selected its own portfolio of trading robots that it trades on its own account, and this trading system is doing quite well. Thus far, trading profits have been more than 20 times greater than the trading commission costs! Second, FXMultiTrader offers to give trading rebates to the client, trading rebates that come out of the commissions that FXCM pays to FXMultiTrader. In other words, FXMultiTrader not only shows you a profitable trading system that you can use without paying anything up front, it also pays you money back for each trade you make. This is actually an even better deal than if you just opened an account with FXCM directly!
Compared to the many questionable FOREX trading systems on the market today, the FXMultiTrader approach is something that the long term trader should consider trying right away.
