Dec 20

Written by: StevenZed
12/20/2008 9:13 PM

I have received a copy of Forex-Ai Autotrader from Gary White http://forex-ai.com/ claiming to be a revolutionary new Forex Autotrader system that uses Artificial Intelligence.

There are a few of them around and they all have something in common. If you distribute the system to a lot of people and they are all trading based on that signal, the system eventually stops working, so I was pretty sceptical about this new “trading robot” as well.

It seems to be a pretty simple system at first, no indicators, just a detailed instruction manual on how to install the Expert Advisor for the MetaTrader4 platform and how to train the system every month.

When I looked at it in more detail, I found two main differences however between this and other systems I have seen so far.

The Forex-Ai system seems to behave like a human, in a good way. When I trained it based on the instructions I received, it came up with about 5-6 usable setup parameters I could chose from. I tested out two of the recommended options and they both turned out to be similarly profitable, despite the fact that they gave me different trading signals.

Then I trained it again and to my surprise the 4 usable parameters that the system recommended were different again. How weird!!!!

Running the system with one of the 4 usable parameters the system has given me, I still manage to produce profit with slight variation of the previous two.

Although I believe that only a couple of dozens of the Forex-Ai packages were given out for review, (so I don’t really know how well it performs when it is used in masses) it seems to me this system CAN work still when there are many of us using it.

The other difference I found is that Gary White must have strong manual trading background, not just coming from the AI world.

Many beginner traders fail to realise that predicting price movements from the past price history itself will not work. The Forex-Ai system is uses EURUSD, Gold and Crude Oil prices as a minimum in the attempt to determine the price of EURUSD.

Although there maybe other inside tricks, for obvious reasons, they weren’t revealed to me.

It also has built-in money management. You can set your risk level and can choose to trade fixed lots or percentage of your portfolio. During my testing I used the default money management option, which is a variable lot size, based on the portfolio value.



In summary:

Pros:

The Forex-AI system appears to be a simple to use system for Forex beginners to get a head start.

It is good that it has a basic money management built in, which is sufficient in most cases.

The most unexpected thing however is that unlike any other systems, this can work differently for each user and each of them can trade profitably.

And of course being an AutoTrader system it enforces discipline on you.

Cons:

It only trades one currency pair EURUSD, but I was told, other currency pairs are in the pipeline. This may not be such a bad think if your portfolio size is smaller than say 20-30K. Using larger 100K accounts however I would seek to diversify to minimise risk. So I think it is safe to say, that the Forex-Ai system as it stands today is designed for 30K or less portfolio sizes.

It is still a black box, so you do not really know how it works apart from what you guess based on the parameters you need to set, which is that it uses the Gold and Crude Oil prices in addition of the EURUSD to get an edge.

Form more information, visit: http://forex-ai.com

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