Scientific method – Scientific method refers to a body of techniques for investigating. To be termed scientific, a method of inquiry must be based on gathering observable, empirical and measurable evidence.
In other words, you develop and theory and using the scientific method you rigorously test the theory in an attempt to prove it valid.
Now let’s talk about the Forex Robot World Cup.
Heard of it?
In case you haven’t this is what the people behind the Forex Robot World Cup have to say:
“Creating the first truly professional, automated Forex trading competition that would yield the world’s best functioning Expert Advisor (EA) driven by realistic parameters in live market conditions, and allowing Forex traders all over the world to use these Forex robots in their personal trading.”
This is what I have to say:
They have created a way to scam gullible and lazy Forex newbies into buying a poorly tested wonder robot (EA) for a staggering $995.
They start off by offering $150K in prizes to entice programmers to develop EA’s and enter them into the competition. When they have a few hundred EA’s they launch the competition and for 2 months they test the EA’s on a $1k account. At the end of this two month period whichever EA ends up with the biggest percentage profit is the winner.
What an absolute joke.
Lets get back to the scientific method. The scientific method has been used for hundreds of years to test hypotheses and acquire new knowledge. The scientific method calls for rigorous testing of a hypothesis before the hypothesis can be proven valid. For example, any new drug that is developed has to go through years of rigorous testing to make sure it works and it is safe to go on the public market.
So in the case of an EA. You have a hypothesis (an automated trading method), now to test the hypothesis you turn the method into an EA and subject it to rigorous testing. This is what the Forex World Championship claims to do. However, how rigorous can 2 months of testing be? With 350 EA’s entered into the competition it is highly likely that 1 would have a lucky streak for 2 months. 2 months of testing just isn’t enough to conclude that an EA is profitable.
The problem is market conditions often change. Just because it worked for 2 months it doesn’t mean it will work the next 3 years. The testing of the EA is not rigorous at all, 2 months of testing does not give you enough data to conclude an EA is profitable. You need at the very least 1 year of forward tested data. The problem is no EA will make consistent profit for a year. This is because EA’s do not work there is no easy road to Forex for lazy losers.
The Forex Robot World Championship is really just a mass scale scam. They offer prize money to entice hundreds of programmers to enter the competition. Then they set a 2 month limit hoping that some robot will have a decent enough win streak (With 350 robots it is likely that at least one of them will make a decent return). At the end of the competition they pick whichever random robot got luckiest in the two months and now they have a huge cash cow. They sell the robot at $995 a piece to 2-3k traders and bag a few million dollars. Sure they have to pay out $150k in cash prizes. So they spend $150k to make $2.5 million.
As if that is not enough there is something else. The programmer who codes the robot is made to sign a contract before entering it into the competition. They basically sign away rights to their robot for 6 months after the end of the competition. So basically this means that the Forex Robot World Championship takes ownership of the winning robot and now they can charge whatever they want for it. The creator doesn’t get a piece of the action he only gets the $100k prize money.
It is a perfect scam. They get rich off of somebody else’s work. They invest $150k and get millions of dollars in return.
The absolute worst thing is that Forex newbies gobble it up. This is usually the silly lazy wannabe traders who don’t want to put any work in to actually learn to trade.
Forex Robot World Championship is a joke and I recommend that you don’t buy anything from them.