In the previous article I introduced our readers to the newly released Forex-Autopilot. I am sure everyone will agree that the possibility of having a 100% automated robot execute winning trades for you while you're sleeping, traveling, spending time with your family, taking care of other aspects of your business or enjoying life's little precious moments seems very attractive.

But how far is this dream from reality? Can the Forex Autopilot trading system really help you achieve it? Let's do some calculations and find out!

WARNING: If even simple math gives you a headache you may find this article hard to read… hopefully the potential for making massive amounts of money without too much effort on your part will keep you interested! At the very least you could skip to the bottom and check the bottom line numbers.

In this analysis we will always try to be conservative. What this means is that if for example our chances of success are between 75% and 80% we will use 75% (or even lower). Similarly if we are looking at a risky aspect of the Forex Autopilot trading system we will take the highest probability of failure. This will allow us to estimate the behavior of the Forex Autopilot trading system in the worst possible conditions and our real results when using the system should outperform these results.

Based on system performance results reported by various software owners, e.g. here
http://www.scoutforex.com-a.googlepages.com/StrategyReport_02June.htm
the Forex Autopilot trades opened between early this year and today have the following ratio of winner/loser/no-gain orders on average:

1. Forex-autopilot Profit / Loss Ratio:
W:94% / L:6% / N:0%

Instead of the average reported numbers, let us use these worse-than-average results, reported in the worst case of Forex-autopilot performance records I have seen:
W:76% / L:17% / N:7%

If we eliminate the No-Gain orders as insignificant (they don't influence our bottom line), then the W/L distribution becomes:
W = 76 / (76+17) = 82%;
L = 17 / (76+17) = 18%;

W:82% / L:18% / N:0%

These are our worst possible numbers and they, of course, don't look at all as good as the average numbers.

Let us see if it is still possible to make money with the Forex Autopilot trading system under these circumstances?

2. Forex-autopilot Monthly Trade Frequency
According to the same results the software closes 1-2 trades every day. In other words the Forex Autopilot completes about 45 orders every month.

3. Forex-autopilot Average Pips per Trade (Win/Loss)
As can be seen from the same set of results an average Winning trade is 23 pips whereas an average Loss trade is -13 pips. As per above "conservative" approach let us assume that in our case the average loss trade will actually be equal to the average profit trade.

Now let's take a imaginary $1000 account and connect the dots.

4. Forex-autopilot Monthly/Yearly Results:
Following our decision for conservative approach we will never risk more than 3% of our balance. This means that if we want to allow our trade to go at most 23 pips against us (as per above average) we will have no more than 0.1 lots open at any given time. Since the Forex Autopilot trading system sometimes opens 2-3 trades or even more, all at the same time we will reduce the number of lots to trade to 0.01, which is 10 times less.

As you can see we are really pushing the Forex-autopilot envelope here but that is the only way to go if you want to get a realistic estimate of the system's performance. As we all know - in real life something will always go wrong, so we better be prepared!

Ok, here's the formula:

0.01 Lots x 23 pips = 0.01 x $100,000 x (23/10,000) = $2.30

This is the size of our "worst possible" trade (+$2.30 for loss trades, -$2.30 for winner trades)

We have 45 trades on average each month, with 76% being winners, 17% losers and 7% no-gain.

76% x 45 = 34 profit trades
17% x 45 = 8 loss trades
7% x 45 = 3 no-gain trades (0 balance)

As per the above results average trade in dollars is $2.30.
34 x $2.30 = $78.20 profits
8 x -$2.30 = -$13.80 losses
(the no-gain trades of course are not interesting…)

Total = $64.40

CONCLUSION
So your monthly profits, in the WORST CASE SCENARIO should be around $64 or 6.4% (of $1000). Using the power of compounding, you can see that your yearly results will be $1000 * 1.064 ^ 12 (1.064 to the power of 12) = $1000 * 2.105 = $2105 per year.

Two thousand dollars may not look very impressive but that's only because you started with an initial deposit of $1000!

Using only worst case scenario numbers and a very conservative trading strategy we have more than doubled our initial investment in 1 year!

Not bad.

Compare this result with an average market return of 11%-18% annualy (and likely to be much worse in the coming years due to US heading for recession). This would generate you $180 of profits on your initial investment of $1000. Compare it with the measely 4%-5% interest if you leave your money in the bank.

Your cost to enter this opportunity? $800? 500? Nope! Not even four hundred bucks! The price of the forex autopilot software is $399. If you happen to buy it during one of the days when they have a promotion (75%) it will be only $99!

Interested? Click the link above and check it out! What have you got to lose? As mentioned in Part I of the article - the Forex Autopilot trading system comes with an 8-week money back guarantee which turns your purchase into a risk-free trial!