Lost £6500 through an EA firm, can I make it back?

Trading Systems Expert Advisors and Automated Trading
1

Hi all,

Just wanted to share what happened to me this week in the hope that you can avoid doing the same as me but also find out if anyone knows of an EA that will not present the same amount of risk. I really want to make the money back.
So I signed up to a UK signal provider called Auto Forex Direct back in February and ran their demo account twice. They had an issue in feb/march where they has some trades go bad due to the crash of the EUR but that seemed to be the extent of the loss on two different trades. I wasnt too concerned with that has they had a really good April and pulled in 22% profit for their users. The track record on their myfx page spoke for itself.

So on 14th May I made the decision to go live and put £8000 into the broker IC markets, linked my account to the auto forex system and it began placing trades for me. Initially it all seemed fine and in the first week I made £316 profit. So I was happy and looking forward to seeing more profits roll in.
This is then when it all started going wrong, the following week the system started placing sell trades on the EUR/JPY pair and immediately they started drawing down. The system kept placing trades until there were 12 trades, all sell, in the same pair. Each day the drawdown got worse and worse with no apparent stop losses being set. I contacted them and every time I spoke to them they just kept telling me the pair will retrace, this couldnt be further from the truth.
As the days went on we got to last Wednesday the day before the ECB were due to announce the extra 500 billion relief fund for the EU. They of course announced it and the euro took off even more and on the Thursday the account was up to 85% drawdown, I couldnt stand it anymore and decided to manually close off all the trades putting me out of pocket by £6500, I managed to save £1500 but obviously massively down.
Its a good job I did as the broker started putting in stop outs and pulling back equity it got that bad.

Auto forex direct then put a message up on Friday to say they were suspending all trading until further notice, cancelled all users subscriptions and refunded the previous months fees. The trades are still open now and they still believe they will retrace even though they have been open for almost 3 weeks!
i feel like I’ve been totally done over, a company operating in the forex market with no risk management at all, no risk to reward ratio and seem to completely overtrade the accounts. Lots of people I know of on there have lost £1000’s
Please avoid this service if anyone has seen anything about them, the trust pilot reviews were correct and I should have never decided to go live with such a large account. Totally stupid of me.

I am now wondering if there is a less risky way to attempt to claw that money back by putting in some more money into forex but with an EA that has risk management in place to prevent another account being blown. Does anyone know of a truly decent EA with that sort of management in place that I can use to get some good profits without risking more money?

Thanks

2

The EA put you short EUR at the wrong time - likely it is coded with TA in mind.

A simple suggestion - get to learn the market for free - well actually you may have to spend something - time.

You will never recover your loss via signals or ea’s.

The FA is what started the run of EUR buying and it was very obvious to the market that it was going to happen - a ‘set up’ is what they call it.

Read this thread re the Euro since 3 weeks ago and you will figure why the EA was short, then too think about the stock market and what has been happening to risk, then figure how JPY traders would react.

4

Sorry to hear about your loss. Dont invest in EAs. They’re back tested and optimised therefore when the market conditions change it blows accounts. The myfxbook showed approx 35% drawdown in march. That’s too much man. But if your risk appetite is ok then you could still accept it but thats as bad as it should get. However when your account is worse than that you need to get out, not wait for it to get worse.

Also did they recommend that broker? I reckon they might have been affiliates too so making money from commissions. This is why due diligence and sites like these are around so you can stay away from this BS.

5

Drawdown should never be more that 15%. If the EA can make 2-3% a month that would be a brilliant result! I think you can make it back but it will take time !!!