Long term member James has kindly posted below his initial findings with the Bitcoin-robot. Omar & I are also intrigued enough to try it on a “real money” account, ironic I know 🙂
A few weeks ago I made a brief post about the new bitcoin trading robot.
Like most people I knew hardly anything about Bitcoin apart from the mainstream press & scare stories on the internet, but this week the German Ministry of finance has formally recognized Bitcoin as a “unit of account” which can be used for private transactions.
The US Government, no doubt worried at yet another possible contender for reserve currency status, are also currently investigating the possibilities.
Why have the Germans recognized Bitcoin and the USA may follow? Taxes!!
Germany is currently looking at the best way to get its cut of profits. The US governments initial stance has been to try and bully Bitcoin into submission with claims of money laundering BUT Bitcoin is growing in popularity every day. Whilst part of that is no doubt the novelty factor and the fact that it is now all over the main stream press, people do seem to like the fact that it is not controlled by any government and the comment “Free market money is safer than government controlled” is often quoted.
Many Argentinians are claimed to be preferring Bitcoins over $US, so much so that Bitcoin is allegedly opening an office there. Argentina has 25% inflation and more worryingly for its citizens is that during the previous economic crisis, those who had their savings in $US suddenly found the government forced them, via the banks to convert them into pesos at an exchange rate around half the true value. In other words they lost half of their value overnight!
Long term forexmentorpro member James emailed this week to say that he has bought the “Bitcoin Robot” and he has kindly provided us with a mini Bitcoin robot review. Omar has also decided to follow suit and we will let you know his findings and results on a “live account”starting later next week. Here is James email:
“Hi Marc, I read your brief Bitcoin Robot review article article last week and like you was intrigued about the concept. My trading days began way back when ticker tape was used so you could say “I have been round the trading block a few times.”
Back in the 1980’s I dabbled in arbitrage with shares which pre the internet was a viable business, nowadays it doesn’t work and as you found out with bookmakers they slammed the door there as well. So the concept of arbitrage is not new to me. For those unfamiliar with the term arbitrage simply means you make a profit by buying the same product cheaper in one market and selling it higher in another.
(For more information on arbitrage here is wikipedias explanation: CLICK HERE Â )
I researched Bitcoin and was fairly satisfied that it is unlikely to collapse anytime soon and then had a look at the bitcoin robot sales page. I am too long in the tooth to fall for the average long winded sales letter but I admit that many of the points that they made struck a chord, especially the fact that because its so new as a concept for many of the newer users, that those of us who are a bit more internet and trading savvy can actually make a profit from trading it, long or short. Anyone who has traded forex or similar markets will instantly recognise that the charts are technically the same and I am currently looking at the possibilities of trading it manually.
Back to the Bitcoin robot, ok I admit it I signed up! It has a 60 day guarantee so if it turns out to be junk then it will go back.
Setting it up?
I am not the most tech savvy of people so I went for the option where they set it all up for me.
Nothing to do but log in to the members area and start using it.
There is no such thing as a demo account for Bitcoin which was a little disconcerting, so you need to put real money into an account. Some of the folks in the members area are showing results from accounts with as little as $100 and others with $10.000+ – I wouldn’t dream of putting such an amount into something which I don’t have personal experience of, so I put in $250 which I will increase if & when I feel more comfortable with it.
On a separate note, the “brokers” are another definite concern. Bitcoin is un regulated and the company that the robot vendors recommend to trade is registered in Bulgaria of all places so that was another red flag for me. Best advice from me is look for one that is at least run by a company in your own jurisdiction or one that you feel confident about the legal system. Bottom line for me is that I don’t usually get involved with this kind of thing and never bought a forex robot, but I just have a feeling that this could be a case of being in the right place at the right time and if it all ends in tears I will only have lost a small amount and I will claim a refund on the robot.
Update 28th August, I am in profit! Its not a lot but then again it’s a small account. The vendors claim that 98.8% of members are in profit and some are showing gains of $1000’s but as I said earlier I need more confidence in the technology and the brokers before I would think of risking more capital.
Conclusion: I am not recommending nor validating the vendors claims, BUT I do find the concept to be sufficiently interesting to have “had a go.” I have previously made money via arbitrage and being in at the beginning certainly appeals to me.
DO I expect to get rich quick? NO WAY!
Do I think it’s a good to throw my 401k in the pot? Definitely NOT. My advice? If money is tight for you then leave it alone. If like me you “fancy a flutter” and are willing to risk a few $100’s then its certainly “worth a look. I will update you in September, Yours Sincerely, James W”
Thanks to James for his insights. As I said earlier Omar & I will try the Bitcoin robot on a live account , here is a link to the page explaining our findings: Introduction to Our Bitcoin Robot Testing
If you want to know more about the Bitcoin robot here is a link to the sales page:
Author: Marc Walton
We decided to give this bot a chance. After reading reviews, most of which seemed positive, but almost all fo which contained referral links, we figured it was worth a shot. We tried both ltc and btc. The reviews suggested going with aggressive mode, so we did.
Wanting to go lightly, we started with $1000 worth of BTC. Immediately the bot sold almost all of the btc for a loss. From there, it just got worse.
To be fair, MtGox crashed during this time. And we were impressed with the controlled losses on the way down. However, we were not impressed with the fact that the bot lost money on just about every move, up and down. Within about three and a half weeks it had managed to wipe out over 10% of our original investment. This is horrible. Even a novice trader with good loss management skills should be able to do better than that.
The ltc side wasn’t much better. For some reason, it wouldn’t trade at first. That turned out to be a good thing. We put in $500 worth. After promptly selling our coins for a loss, the bot didn’t trade for the first week or so. Support never responded to queries. On a minor move of about a quarter, it managed to lose $20. We were impressed that it gained it back within a few days, but it still continued the downward movement from there, in spite of ltc gaining a dollar during that time.
We’ve emailed support numerous times. Once we received a response asking for our account email. After providing it, we received no more responses to our questions. NONE.
The literature claims that the robot reads technical indicators. Being familiar with these tools, I watched to see how it handled things. For loss management, it has some good features built in. However, it missed some obvious moves that anyone even slightly proficient at technical analysis and Elliot Wave theory should have picked up.
We’re now in the process of requesting a refund. Hopefully that part of the promise will be good. The rest of it wasn’t at all.
Kind regards,
Joe