Forex Gold Investor website describes their precious metal expert adviser as the “most advanced EA” ever designed by their developers and “a true revolution in gold trading.” And while maintaining the anonymity of these developers and programmers “with very long experience” it goes on to state that they have come up with “a proven ‘sure bet’” system that is “guaranteed to specifically extract profits from the gold market.”
For $197, Forex Gold Investor’s promise to present you with a “new breed of smart algorithms (that) are tilting the game into your favor.” Throughout the website, its administrators promise a series of ‘secrets’ that they believe makes their automated EA the most “preferred trading system for serious precious metal investors.”
But how true are these bold statements or is this EA just another scam? We put these claims and strategy to test and here are our findings and conclusion.
Forex Gold Investor strategy and its effectiveness
According to the website, Forex Gold Investor developers have tried and tested a combination of hundreds of trading algorithm and used the most dynamic to create their trading strategy. It further adds that they haven’t just put in thousands of hours researching and developing these algorithms but consider it their “life’s work,” further adding that they have been using it to grow and protect their investments.
It refers to the fully automated trading system as a ‘set and forget’ model that takes five minutes to install, compatible with the MT4 trading platform, and fitted with apt risk management features that include drawdown protection. One might, however, be tempted to consider these explanations as being too vague. For instance, the website doesn’t mention the specific (or a combination) of the strategies used by the EA and neither does it explain how the drawdown protection is achieved.
Forex Gold Investor website links to 14-year backtest results of their trading system whose results include an average win rate of 69% and a maximal drawdown of just 7%. The backtest was carried out using the trading system’s default settings that include a 15-minute trading time, 200 spreads against an initial deposit of $2000 and every tick data at 90% modeling data quality.
While these results are massively impressive, they are run on a demo account, implying that they don’t take into account real market trading conditions like slippage, commission, and requotes that have a huge impact on the profitability. It is still unclear why Forex Gold Investor EA developers choose to use the demo and not the more reliable real account.
Live account trading history
Forex Gold investor has the trading history of their $1000 demo trading account hosted on Myfxbook. In the eight months that the account has been in operation, it has reported an absolute gain of 41.59% with a maximal drawdown of 13.66%. On average, the automated gold trader reports a 4.74% monthly and 0.15% gains.
The trading system’s performance doesn’t match the guarantees and claims its developers shower it with on their website. Even more disturbing is the fact that they use DEMO accounts and not live trading accounts to track the performance of what they refer to as the most advanced system and perfect trading strategy for sophisticated investors. Such a red flag further compounds our suspicions about the legitimacy of the trading system and its developers.
Everything else you need to know about Forex Gold Investor
60-day money back guarantees: The only positive thing we can scalp off the Forex Gold Investor website is the 60-day money back no questions asked guarantee. The site claims to give its clients a chance to test their trading system risk-free in a demo and a right to demand their money back should it perform below par.
Reasons to be cautious when dealing with the trader
Misinformation: The Forex gold investor website paints a picture of a super-effective trading system and guaranteed monthly returns. The opposite is however true. And it all starts with the suspicious use of demo accounts when conducting backtests as well as testing trading in the live market environment. The fact that demo accounts are insulated from some live market challenges like slippage and commission goes to show that the already dismal performance posted could have been worse.
Expensive: Every money and commodity trader checks on the profitability and reliability of both the trading system and its developers before deciding on the EA to integrate into their live account. Forex gold system is not only struggling to post meaningful monthly gains but has also been raked by a series of subzero gains. It also doesn’t make economic sense to spend over $397 (without the discount) acquiring a system that only best in jeopardizing your investments.
Secretive system developers: Going through the website, one can’t help but notice the confidence in the trading system’s performance oozing from the site content. You then wonder, why would the developers choose to remain anonymous even after coming up with such an ‘advanced algorithm’? More importantly, why did they choose to dispose of it to the public for a few bucks while it could have earned them fortunes in managed PAMM accounts?
No customer feedback/reviews: In an ideal situation, and if Forex Gold Investor was as effective as it claims you would expect it to attract overwhelming support from its users and the online community of traders. The use of demo accounts and exaggerated site content about the system’s performance may have disinterested traders from trying it out.