The Forex Robot World Cup (a.k.a. FRWC) is now officially over and a winner has been announced: the LMD Multicurrency trading robot which was developed by Drazen Ziskovic of Croatia.
As you may know, there are hundreds of Forex robots in the world and the market is full of scammy and shady robots sold by greedy marketers. Only a small percentage of robots really work well and it’s difficult to know in advance which are the gems and which are the duds. This is why the Forex Robot World Cup was established in the first place: to provide a way for traders to see robots in action, tested on live accounts (not back testing), all on the same platform with the same conditions.
This head to head battle of the robots took place after rigorous screening phases in which most of the submitted robots were rejects for either not performing well enough or because they’ve been commercially sold before (Only non-commercial robots were allowed to participate). Only 24 robots made it to the final stage which lasted for about 2 months.
The LMD Multicurrency robot was the winner with a profit of 145.60%. Not bad for a robot of a guy who never even sold a robot before. This is quite an achievement which also earned the developer a $100,000 prize!
In an interview done with Drazen Ziskovic who developed the robot and from other details known about it, I can say that the LMD Multicurrency robot works with detailed and intricate chart pattern recognition algorithms. It tries to deduce the future by reading into the patterns of the price charts of various currency pairs. This was done according to the experience of Mr. Ziskovic himself through his years as an active trader.
The robot trades multiple currency pairs simultaneously. This creates a risk diversification effect because you can place more trades on more markets (if you consider each pair to be a market in its own right). This also allows the robot to take a bit extra risk on each trade since the diversification reduces the overall risk. These are the reasons why it won the first prize and achieved such an impressive profit margin.
The funny thing is that this guy came out of nowhere. It was only due to the FRWC that the rest of the Forex world had ever heard of this robot and what it had achieved. This seems like an impressive robot and a real challenge to developers everywhere.