HomeMegadroid SettingsDefault Megadroid Settings – Version 1.41


Default Megadroid Settings – Version 1.41 — 34 Comments

  1. Hi there,
    I notice your risk level set to 0.0, will megadriod still trade on that (i.e. arnt you risking 0% of your acc?
    I purchased megadroid last week and ive still not had a trade.

  2. Hi Jon,

    I personally trade using fixed lots instead of using Megadroid’s automatic money management. Setting the Risk Level parameter to 0 makes Megadroid trade fixed lots as specified by the LotSize parameter.

    I barely got any trades last week, and that was because Megadroid doesn’t place trades for the last 3 days of the month.

    If you look through my Monthly Results you’ll see that Megadroid usually only places around 7-8 trades per month – sometimes more, and sometimes less. Sometimes there’s no trades in a week, and at other times there’s 2-3 trades per week. It just depends on whether the price action on the EUR/USD pair triggers a trade signal.

  3. Hi Richard! Is Version 1.35 a free update? If so, could you please tell me the link for the download? I went to MD’s site and I didn’t see anything there. I appreciate your help and your website.


  4. Hi Feng,

    “Recovery mode” just causes Megadroid to increase the lot size after a few consecutive losses.

    The reason I don’t enable it, is because each Megadroid trade has the same probability of winning or losing, and so increasing the trade size after a few consecutive losses will just increase the risk of a larger loss on that trade.

  5. Hi Charles. I have multiple licenses, so the changes didn’t effect me. Only with this new version have they started to enforce the 1 license per copy rule.

    You could probably get away with just 1 license if you choose one of the better performing brokers. Trading a few accounts gives you the advantage of being able to average your results though, so if only one broker gets a large loss, the impact will be less. The downside is the cost of extra license(s).

  6. Hi Richard,
    You mention that Megadroid trades have same probability of winning or losing. I was under the impression that MD won more trades than it lost, in which case it would make sense to enable the Recovery Mode.

  7. Hi Corn,

    The question is not the win-rate, but whether the probability of a winning trade increases after a few consecutive losses. I would argue that the probability of a win after say 3 losing trades is the same as the probability of a win on the first trade.

    For example, say Megadroid had these 3 consecutive losing trades over a 1 week period: -0.1 pip, -52 pip, and -1 pip.

    With recovery mode on, Megadroid would increase the lot size of the next trade. But do you think the 4th trade has a statistically better chance of winning because of 3 preceding losses? IMO the probability of winning on the 4th trade is actually exactly the same as the probability of winning on the first trade. i.e. the trades are independent. Therefore, increasing the lot size, will just increase the $ risk on the account.

  8. I am using FxPrimus with ForexAlive VPS Solution, since last sunday, but i didnt get the trades on 11th and 12th April, whereas you got them. Am wondering why ???

  9. Hi Avi,

    Many of my accounts didn’t get any trades on 11th or 12th either.

    There’s often variation in Megadroid trades between brokers. Sometimes all accounts get a trade, and at other times only a few accounts get a trade. I wrote an article (see HERE), that explains the reasons for this variation.

  10. Hello

    Im running the MD for view weeks on an Alpari UK account. but i would like to change to MIG-Bank in switzerland, so my question, does someone have expirience with running the MD on MIG-Bank in switzerland???

    chris 🙂

  11. Hi Richard, First of all I must say you are doing a great job. I see your S1_Reference=77777773 and S2_Reference=33333337 can I put any 8 digits in place or I should use the same the same as yours ? I have a $3000 account …Please also advice on LotSize=*.* . Do you know I should put LotSize as LotSize=6.0 since megadriod is all about winning. Please advice.

  12. Hi Kester,

    S1_Reference and S2_Reference

    These are just the reference numbers Megadroid assigns to trades it opens (also called “Magic Numbers”). They allow Megadroid to keep track of open trades. S1_Reference is the number assigned to S1 type trades, and S2_Reference is the number assigned to S2 type trades. They can be any non-zero number, so long as S1_Reference and S2_Reference are different.


    This setting will depend on your own risk tolerance, so it’s something you’ll have to decide on.

    A LotSize of 0.50, means 50k EUR/USD will be traded. That means $5/pip. So a 50 pip profit month will be a $250 profit, and a 100 pip loss, will mean a $500 loss in this case.

    I personally trade a total of 250k EUR/USD spread across my accounts. So I’m risking $25/pip.

    I think it’s important to calculate the size of a potential large loss when deciding how much to trade. Megadroid can lose as much as 120 pip on one trading day. For me that’s a potential loss of 120 x $25/pip = $3000 USD. While these occurrences are infrequent, they can occur at anytime. So it’s important to appreciate the downside as well as the upside.

  13. Sorry foor bad english.

    Richard, if Aggressive=false the results are better ?

    You can see in past transactions the S1 and S2 results separtely ?

    If Megadroid can make comment individual from S1 and S2 is easy for check
    if S2 has merit.

    Thank you !

  14. Hi Apache,

    “Aggressive=false the results are better ?”

    A while back I manually added up the results for S1 and S2 trades over several months to compare performance. I found that the trade counts and results for each trade type were roughly the same over time.

    However, on some months one type of trade could do much better than the other. For example, in June the S2 type trades did poorly. But there has been other months where the S1 trades did poorly and the S2 trades did well.

    I personally always trade both the S1 and S2 type trades, because I’ve found the results to be roughly similar over time. Also if I only trade S1 trades, my trade count each month would be low i.e. about half.

    One point to remember, is that if you do trade both S1 and S2, it is possible to get a full loss on both trades on the one day, resulting in a loss of over 120 pips.

    “If Megadroid can make comment individual from S1 and S2”

    You can always ask Megadroid directly. They can be contacted at: support[at]forex-megadroid.com

  15. Hi Richard, I just found your site and it is very helpful. I’ve been trading MD since April 2009 also and was up 230% at one time but lost some back all on IBFX. Can you tell me what v1.37 offers and why don’t you use RMS on IBFX?

  16. Hi Michael,

    I disabled RSM on 2 of my 10 accounts so I could measure the impact of RSM. I have 2 accounts at InterbankFx and 2 at Alpari, so I decided to disable one of these accounts at each broker.

    So RSM is only disabled on these accounts (2)
    -Alpari UK (Mini-1)

    RSM is still enabled on these accounts (8)
    -MB Trading
    -GO Markets
    -InterbankFx AU
    -Alpari UK (Classic)

    I’m still unsure whether RSM is of benefit or not. It did prevent 2 large losses in August, but since then it’s blocked about 40-50 pips of profit trades.

  17. Hi Richard.
    I just bought & installed MD. I was looking for other users opinions & recommended settings, when I found your excellent site.
    Can you tell me please, what leverage you are using?
    Thank you

  18. Hi Ken,

    The leverage varies.

    My MB Trading, FXDD and Interbank fx Accounts only have 1:50. The Alpari and FxPro accounts have 1:500. The other accounts are about 1:200.

  19. Hi Mike,

    If you’re only placing Megadroid trades on your account, it won’t matter because when Megadroid opens 2 EURUSD trades they’re always in the same direction i.e. they aren’t “hedged”.

  20. Hi Richard,

    i loved your page, this really helping a lot of mega droid users,

    1- now i’m planing to open a Classic acc on Alpari UK, i just want u to tell me the preferred settings, my balance 1000$

    2- i would like to know what’s broker working better with mega droid ?


  21. Hi Mero,


    I pretty much use the standard settings. (see http://www.megadroidresults.com/2012/11/19/default-megadroid-settings_141/).

    Nothing special.

    What you’ll need to do is adjust your lot size based on your own personal risk tolerance.

    Remember, that while infrequent, Megadroid’s losses can be quite large. I had a 35 pip loss in February on several accounts, and I have had 100+ pips losses before.

    “Better performing brokers”

    My Monthly Results are probably the best guide.

    I don’t think there’s any real standout brokers at the moment. FxSol’s probably one to avoid though.

  22. On backtests I have obtained better results using:
    Since the first one increases the stop loss if the volatility goes higher and the second takes an extra trade if the first one goes down. It means that having both equal to 1 you are increasing your risk and losses when the trade fails.

  23. Hi Richard,

    Going back to your views on recovery mode.

    To find out how many consecutive losses this is the formula =ROUND(LN(555)/-LN((1-0.50)),0)

    So with a 95.82% strike rate the formula will be =ROUND(LN(555)/-LN((1-0.9582)),0) the result is 2 consecutive losses, which, as they say in the blurb would be a very very rare event.



  24. Hi Gordon,

    IMO win rate doesn’t tell the whole story.

    What I mean by that is that “scalper strategies”, like Megadroid, always have a high win-rate (i.e. 90%+), BUT this big win rate is achieved because the losses are much bigger than the wins. For example, with Megadroid the losses can be 100-150 pips +, and the wins are typically 1 to 15 pips. So you need a 90%+ win rate to be profitable overall.

    The other point, is that the losses, while infrequent, tend to occur in clusters i.e. they’re not totally random events. Sometimes there’ll be no large losses for 12 months or so, and then I’ve had 2 large losses in one month. If recovery mode was enabled, that second large loss would be double the size, which would devastate my accounts. This situation actually happen to a few people a few years back.

  25. Hello Richard
    doing some maths (using the gain data that you propose) it looks to me that the gains one can have with Megadroid are completely another thing (much lower) compared to what is “advertised” when it is sold (such as 300/400% gains per year). What do you think?

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