Here’s a post by the esteemed colleague Dave Evans also known as the Market Maven

We can’t recommend this product because we haven’t used it but a link to the web site is provided here. We think it’s similar to FAPTurbo and there is a review of that product posted here

Forex ambush

Going back to the financial storm we’re facing, I thought I might share details of a system that someone emailed me about yesterday.

The system in question is Forex Ambush (http://www.forexambush.com) yet another forex system vendor who took the imaginative step of adding a ‘power’ word after ‘forex’ to name their product.

Forex ambush, forex assassin, forex assault. Think of a good power word and there’s probably already a forex system with that name.

The system is marketed with a load of blurb about the financial crisis; layoffs, debt, depression and why you need forex ambush which WILL make you money. We’re told it is 100% accurate with returns in excess of 20,000% annually.

Firstly, nothing is 100% accurate, at least not in the long run. That claim got my hackles up.

It took a quick scan of the results to reveal that Forex ambush was a very dangerous proposition.

All the wins are 10-20 pips which makes this a scalping system, which is fine apart from the fact that the system might be risking 300 pips to make just 10!

On January 2nd of this year, the system sold EURCAD at 1.6989 and closed at 1.6977 around three hours later. I’ve checked my charts and at one stage that trade was 110 pips against.

So you are risking 110 to win 12. That’s not the kind of risk reward I like to see

This one is worse:

Sept 12th 2008 – Sold EUR/ USD at 1.4170, closed at 1.4150. 20 pip profit. However, it went 313 pips against at one stage, that’s risking 313 to win 20. Madness!
Before the financial crisis broker I was reading Nassim Taleb’s books on black swans and how we are all fooled by chanced. One of the explanations for the sub prime crisis is risk taking like this.

Certain investment bankers were buying/ selling bonds consisting of bundled up sub prime/prime mortgages. The returns on this were tiny in comparison to the risks taken on. According to Taleb, it was like picking up pennies in front of a steam roller. The reason they were willing to take such a short term view was because their bonuses were based on short term performance.

We all know what happened next… they (and we) got steam rollered.

So while Forex Ambush might continue with its ’100%’ record for a few more weeks/months, the chances are that one day soon that trade which reversed on them won’t come back and you’ll be left with a loss of 1000 pips or more trying to win just 10.

There’s nothing wrong with risking more than you stand to lose provided you have a plan in place that accounts for this – i.e. a high strike rate. You can make money risking £100 to win £10 if you have a 95% strike rate. However, it is very dangerous to believe that just because a system hasn’t lost, it won’t, especially when there doesn’t seem to be a cut off point for the stop loss level!

Free Forex Trading Signals: Free Forex Trading Signals: Free …

When all is said and done check out the review at FAP Turbo Reviewed by Jake Peters that gives an objective review of the best software on the market for forex applications