FOREX PORTFOLIO TRADER – TESTING RESULTS

Forex Portfolio Trader

We would like to share with you our findings following our testing of Forex Portfolio Trader, a product of BJF Trading Group. First, I’d like to talk about Forex Portfolio Trader, which we were able to get from BJF Trading Group’s website. We have also received information from our phone conversation with the company, and this information is available through a free webinar. According to the company’s developers, Forex Portfolio Trader comprises 200 systems, all of which have been tested in live accounts and undergo continuous testing. At any given time, between five and eight systems are engaged. The system selection has a best-system bias, which means that the systems selected are those considered to be the best under current market circumstances. For a system to make the cut, minimum drawdown and maximum profitability are required at the present time. The selection is made in a fully automatic mode and is based on algorithms used by BJF Trading Group. If one of the systems starts deteriorating when viewed against its historical data, that system gets automatically removed from the portfolio and is replaced by another system (systems not currently in use are on standby). This approach allows Forex Portfolio Trader to have a very small drawdown level along with good profitability.

 BJF Trading Group

A little bit of background information on BJF Trading Group. The company was founded in 2000 and is a leading developer of automated trading systems (i.e. robots) for forex trading using the MQL4 and MQL5 programming languages, as well as forex robots for FIX API. Some robots made by the company have received prizes in various contests organized by brokers.

Forex Portfolio Trader in greater detail

Our testing has determined that the system includes several swing systems, i.e. systems that work during market fluctuations, as well as systems that are oriented towards market level breaches, which are known as sideways market movement systems. The system therefore includes swing systems, trend systems, and sideways market movement systems.

Up to a maximum of 30 orders can be placed simultaneously, but the total value of all open orders does not exceed 10% of the total value of the account’s deposit, as per recommended program settings. The order hedging that results from the use of different currency pairs and different systems leads to a small drawdown level.

The system has hidden stop-loss and take-profit orders. It also has equity stop-loss, the level of which is adjusted according to client specifications, normally 10-30%, as well as equity take-profit, normally 8-10%.

The testing results have shown that the system can open several orders in the same currency, up to a maximum of five orders. Such an approach allows users to determine entry points. As a consequence, every position is slightly more profitable than it otherwise would be if the entry point of the position were determined with only one order.

The manufacturer’s claims of having achieved a 35% monthly return with a drawdown of 14% have been confirmed by our own testing. Moreover, the use of the built-in money management system keeps the drawdown level at 14% while further increasing profitability. However, the testing has been done over a three-month period, and it is unclear whether the same results can be achieved with the same level of risk if applied over a longer period of time. Based on our trading preferences and our conception of the forex market, we’d prefer to go with a fixed lot and increase the lot size incrementally, e.g. once a month.

The disadvantages of the system

One of the system drawbacks that we have identified is its cost, although given the sophisticated nature of the system, the steep cost is justified and reflects the quality of the robot.

Another drawback is the lack of the standard stop-loss order capability, as the system comes embedded with hidden stop-loss orders only. Although this is the preferred approach of some traders, we believe that the standard stop-loss capability is advisable and its lack a disadvantage. However, as I understand, this will be taken into consideration by company developers in future upgrades.

Negative equity during testing can reach 10-15%, but ultimately, considering that the system is protected by equity stop-loss, by the number of open orders that can be placed, and by the number of different systems used in the portfolio, we do not consider the level to be unreasonable.

To summarize, we believe that the system is one of the best products that can be found on the market and has excellent prospects.

You can find ForexPortfolioTrader forex robot here: http://iticsoftware.com/fpt3

Comments are closed.