BURU expert trading system?

Hi All,

Wanted to jump on this thread to clarify a few things. First, Buru is not an IBFX Australia company. IBFX Australia just happens to be the broker which Burutrader prefers their EA to trade on. The speed of our systems and deep liquidity provided via our technology and banking partners enables Buru to clear billions in notional value extremely quickly.



As always, IBFX Australia welcomes all EAs – even scalpers – and we’re especially happy to work with profitable EAs.

Do you understand Martingale?

Let's say your goal is to make 1% return per trade.

You bet 1% of your account, and suppose you lose.

Now you must double to 2%, so that if you win, you recover your loss, and also meet your 1% goal.

But suppose you lose again. Now you must double to 4% risk, to recover your 3% lost thus far, and still make the 1% goal.

Suppose you lose again. Now you must double to 8% risk, to recover your 1%+2%+4% = 7% lost thus far, and still make the 1% goal. And so on.

After 6 consecutive losses, you've lost 63% of your account. What's the probability of losing 6 consecutive trades? It's a lot higher than most people think (see the tables below). Assuming a 50/50 win/loss rate, the probability of encountering 6 consecutive losses within any 50 trade sequence is 51% (in other words, more likely than not). Within any 200 trade sequence, it's 95%. In other words, trade for long enough and the 'death sequence' will almost certainly catch up with you.

That's the 'stupidity' of Martingale - after 6 losses, you're risking 64% of your account just to gain 1%. In other words, you'll now need 64 more winners than losers, just to recover from the 6 losses.

Look at the equity graph back in post #14. That's a classic telltale Martingale. A line that goes up at a consistent angle, with dips of varying sizes, each dip being followed by an immediate recovery, thanks to the doubling process. As long as the doubling stays within the boundaries of your account margin, then Martingale will continue to make consistent profit, just like your CEO mate Todd says. Because of the recovery process that's built into the doubling, Martingale will always deliver a perfectly climbing equity curve......... until the 'death sequence' occurs.

Martingale will work spectacularly, until the 'death sequence' of X trades suddenly and unexpectedly occurs, and your account is blown. It's not a case of if it will happen, it's when. It could happen tomorrow, or it could happen in the year 2020. No amount of backtesting can tell you how soon a 'black swan' event is likely to occur. Ruin could easily happen before you have a chance to withdraw your initial deposit.

There's no analysis, or forex strategy, present in Martingale. It's nothing more than a MM system that's eventually doomed to fail. You could use Martingale betting in the casino - all it amounts to is doubling up following every loss. If there's no betting system that can beat the casino, then there's no position sizing system that in itself can beat the forex market. If there was, everybody would seize upon this shortcut, and we'd all be rich.

So you think you can beat the 'death sequence' by taking position sizes of 0.1%, or 0.01%? Well fine, these extend the sequence by a few trades, but your return is going to be only one tenth, or one hundredth, of what it would have otherwise been. Not much sense in making a few cents each day from a $10,000 account, while all the time knowing that ruin is only ever a few trades away. Not to mention that it's going to take 10 or 100 times as long to get to the point where you can safely withdraw your initial deposit.

Vendors love selling martingale EAs. Given enough buyers, there are always plenty of success testimonials to fill the websites as buyers enjoy early profits. Then the vendor is long gone, along with the gullible buyers' money, once the excrement starts to hit the fan.

OK, I've said my piece. If people want to use forex to gamble, that's their prerogative. But at the very least, know the risks involved, and make an informed decision.

David

the lives result posted in their site a not the same with my. right now I down $ 1400. If we are using same broker than we should have same results

Oh dear. My demo EA tells me that loads of accounts were wiped out this week. Yesterday their own live stats confirmed that, but when I checked the website today they had removed the link. How dishonest. I wonder what IBFX Australia think of all this?

Hi Hanover, so are you saying all EA systems do not work bc the black swan sequence will eventually strike? And hence we should just forget about EAs. Do you know of any successful EA system yourself and what about it that made it successful. I am new to EAs myself so it is a learning curve for me.

I am thinking that profits from EAs need to be taken out regularly so that so that risk capital is replaced by profit capital -- hence if and when black swan occurs - then risk capital was not affected.

Thanks for the info!

Actually, I'm still earning money with Buru and still happy to use IBFX.
As long as I get more return than loss, I'll keep using it.

@Abigail, don't worry, I'll keep using IBFX. It worked well and still does.

I'll keep you guys out there updated. If I stop using it, then don't use it too I'll go until losing, no limits until there

Hi Abigail

I signed up especially to respond to this thread

I'm developping since a long time now. I read about IBFX and their efficient way of interbank transfers. You can see that working with a company of your size is a huge motivation for me.

Let me offer you my service. I'm able to develop an expert advisor for IBFX or improve the existing project. I studied quantitive finance and I can program in different languages. If you like, I can send you my CV and a few examples of my work so far. Do you think there's a chance that I have a closer look into the Buru source code and algorithm? Yes, I'm ready to sign a NDA.

Can you pm me your contact data please.

Regards

Patty (the finance dev machine

P.S: I used a lot MT4 and getting used to MT5, C# isn't a fish and J2EE is heaven

Really I am disapointed w/Buru, fortunattely every happen w/my demo account....just to summarize, it blowed in less of a couple days.....after several weeks profitable....I am including results ......(see attached). The only response from IBFX AU support was... that they had problem in those days...and they was changing the EA..cause the huge loss suffered by the buru's client.....so..? http://www.forexfactory.com/images/icons/icon9.gif

God bless the demo account.....http://www.forexfactory.com/images/icons/icon6.gif

ps: I used the risk 1....(by default).

Yes.. check the stats again at burutrader.com
the other 2 Live Accounts [that not own by Buru, 1 is 10K, 1 is 100K are all WIPED OUT]
and IBFX.com.au has removed buru from the website.

also.. just to let you know , my AUD$2300 has gone. its $100 only now.

I wish your clients are not mad at you.

I think it is a wrong strategy taken by IBFX AU to promote BURU on their web site. It gave wrong perception that IBFX was recommending BURU to its clients.

BURU is a martingale kind of EA since day 1. And every martingale/hedge grid/grid/fishnet... kind of strategy will fail. When it fails, it takes all the money from your account. It was well known in the industry.

Based on my experience with IBFX US, it is a good broker, paying my fund withdraw request without any delay.

It think IBFX AU should review what they have done with BURU and rebuild their credibility with traders.

Buru like all other EA systems will go through down periods. The trick is to take profits out on a regular basis so your risk capital is replaced by profit capital.

Buru reduced a $2000.00 account of mine to about $420.00 in 5 days. I bought the EA because it seemed to be endorsed by IBFX AU (as must be evident from the ads that pop up everywhere you go on the internet) and because I have a very high regard for IBFX (US & AU) as a broker, which I still have. I kinda thought that would indicate the EA not to be a scam. To give credit where credit is due, Buru stood by their guarantee by paying me back the purchase price.

I wonder how many traders had a similar experience? If a lot, I would expect IBFX AU to go public with the results of Buru, if need be, distance them publicly from the EA. They owe it to traders who trust them as a broker and as such rely on their associations or opinions.

I would also like to know if my experience was just unfortunate. I would like to compare my results with the results of other traders.

Fortunately, the $2000.00 I put in the account, was profit from forex trading by myself. I allready regained it with "manual" trading, but for the moment I am off EA's.

Comments/sympathy would be appreciated!

Thanks, Forex Factory, for the service you provide! I learn more here than anywhere else.

Hello

Do Buru still used tokyo session to trades, Because this is what cause most of your losing. Best is still learn to manual trading

Hey sstone, sorry for your loss!

What's wrong, why don't I have those losses on my Buru account?
I still have more money on it than invested, but the gap is clooosing.
I didn't always start all markets and did sometimes manual trading (actually with a tool I created).

Anyway, as soon as I have a negative return, I'll stop.


However, IBFX still rocks for me and I even thought today, about being a white-label partner Sounds like work and money investment and in the other hand it looks like a lot of fun in the end!

Hey call me Nostradamus 2.0

http://www.burutrader.com/ibfx/

Still can't belive no one at IBFX had enough braincells to see that this will end in disaster. They must need money BAAD!