The Forex Killer System, which we review here, is not exactly a robot but rather a signal generator. It is a computer program created by a team of professionals lead by a former Deutsche Bank currency trading adviser. The program has a few quirks (read on) but overall is a very simple, very reliable and VERY profitable signal generator for the Forex spot market.

There has been a lot of turmoil in the forex forums with some folks swearing by this software and proclaiming it to be the Holy Grail of Forex, others deeming it useless and yet others declaring Forex-Killer to be an outright scam, so in this review I will try to answer the following questions:

"Is Forex Killer a SCAM?"
    and
"Can I make money with the Forex Killer Software?"

In this review I will also provide a basic overview of the program's functionality and explain how to use it and what other tools you could use to improve the reliability of the ForexKiller signals as well as how to properly manage your trading capital.

Is Forex-Killer a SCAM?

Despite the somewhat cheesy and hyped-up home page on the Forex Killer web-site, the Forex-Killer software, which we review here, is definitely not a "scam".

Wikipedia's quite broad definition of scam or fraud is "a deception made for personal gain".

Forex Killer allows the customer to download the software immediately upon payment, provides a user manual, free upgrades for life, unconditional money-back guarantee and a telephone support number and definitely does not fit the above definition.

Created in 2005 by Andreas Kirchberger, an independant developer and a former Deutsche Bank currency trading adviser, the ForexKiller software sold over 2000 copiesin the first month after being released to the general public in early 2006.

Forex-Killer is sold exclusively through ClickBank, the Internet's leading retailer of software and other digital products, and like all other ClickBank products, is guaranteed to be virus- and spyware-free, meaning it does not collect or send away any personal information from your computer.

Forex-Killer.com are not IB's (introducing brokers) and are not associated with any Forex brokerage firm, meaning they do not profit from their clients signing up with any particular broker.

One advantage of Forex Killer over the bulk of the competition is that it comes with free updates for the life of the product. Given the dynamics of today's economy and the FOREX market, this feature alone, for many users, may be enough of a reason to tip the scales in favor of a purchase. It is certainly a good sign that the company is willing to stand behind its product and is constantly striving to improve it and to provide upgrades to customers at no extra cost.

The only questions that remain are...

does it work and does it make money?

And important questions these are, indeed...

Let me tell you a little story:

When I was 5 my parents bought me a piano. Six years and 4 piano teachers later, having spent an exorbitant amount of money (according to my parents) and having wasted a huge portion of my life (according to the 12-year-old me) the piano and I went our separate ways. I am not sure who was more lucky in the end - me or the piano... Probably the neighbors.

I did not learn how to play the piano but I think everyone will agree that accusing the piano of being a scam and a fraud would be ridiculous - there's many people who play the piano and some of them even enjoy it! To be entirely fair I have to admit that I am not even "musically-challenged" - quite the opposite, actually. At that time I simply did not have the discipline, perseverance and desire to learn how to play the piano.

The situation is a little different when it comes to forex trading software such as Forex Killer, but the main idea is the same: even the most advanced and powerful forex tool is useless if it isn't being used or if it is used incorrectly. Just like my piano teachers, the folks at Forex-Killer will provide support and will do anything in their power to help you be successful in your forex trading but ultimately it's up to you, the user, to take action, start demo-trading and to take advantage of this support and the "killer" features of this software.

Ok, now back to our question: How do you define "works" and "makes money"?

• Is Forex-Killer a well-written software that installs and operates on your computer without crashing or causing other problems? Yes.
• Does Forex Killer actually analyze the market data, not just display some random numbers and graphs on the screen? Yes.
• Does it provide the users with real signals, which are generated according to a strict mathematical formula which statistically generates more profitable trades than losing trades? Yes. (based on my experience and back-testing).

Does the formula ALWAYS work? No. No formula will. Any long time experienced forex trader will tell you that. The world out there is way too complex to fit into any formula.

What any experienced trader can also tell you is that in forex trading your goal is not to be able to correctly predict the market movement all the time. That is simply impossible. Your goal is being correct more often than being wrong and to ensure that the amount of your typical loser trade is less than that of your average winning trade.

Simply put: Bigger profits, more often. Follow these two principles and you'll be well on your way to success as a Forex trader!

And this is exactly where Forex Killer shines and helps traders - by providing a trading system with higher probability of winning trades and a solid Take-Profit/Stop-Loss levels system!

Keeping in mind our motto "more profits more often" let's take a look at a quick test using real Forex Killer results generated on the 12 and 13 of May, 2008.

Forex Killer Test Results

Test taken on 30-min EURUSD.
Total periods tested: 55 (i.e. 27.5 hours)

Test Setup:
========================
The period for the test was selected according to the following criteria:
1. Must be a recent period, to ensure current Forex market conditions still apply;
2. A 24 hour period where the 3 distinct market trend conditions (up-trend, down-trend and ranging market a.k.a. as "sideways trend" ) would be well established.
3. The middle of the period was established visually (fat blue line) and then signals were generated in both directions (past and future) to cover the selected period, starting and ending the test with a loser trade. In the below screen shot you can count 9 blue vertical lines in each direction.
This guarantees that the first and last trades of our test will be "loser trades" thus giving an initial 53% vs 47% "advantage" to the losing trades which should protect us from overly-optimistic results in our test.

ForexKiller Net result = 1350 - 680 = +670 pips in profit.

As you can see from these results, with the 50-pip TP vs 40-pip Loss and 27 winners vs 17 losers the Forex Killer System completely fits the above definition of a winning system: generating more profits than losses and closing more winners than losers.

How does the Forex Killer system work?

The software is very easy to install and operate, and it integrates nicely with popular trading platforms such as MetaTrader (MT4) from MetaQuotes Corp., FXCM's Trading Station and DealBook 360 from Global Forex Trading (GFT).

Integration with a certain trading platform in the case of ForexKiller means that it will be able to get the pair closing prices from the platform and you won't need to enter them manually. If your trading platform does not integrate with Forex-Killer you will still be able to use it but you will have to enter the data yourself. Entering 10 numbers into a text box once a day shouldn't be too hard, though, what do you think?

Let's examine the Forex Killer user interface in greater detail and see how we can actually generate some signals. This is the screen that you will see when you start up Forex Killer:

Forex Killer User Interface (Pic. 1)

To generate the signals export the current chart from your trading platform (the FK manual explains step-by-step how to do it for MetaTrader, FXCM Trading station or DealBook 360), and then use the Load button in Forex Killer to load all the data automatically into ForexKiller.

If you prefer the "manual" way - the rows of fields at the top of the Forex Killer screen allow you to enter the prices. You only need to enter the 10 prices once per session. After that - use the Add button to add the closing price for the next period.

Forex Killer Loading Price Data (Pic. 2)

IMPORTANT! Don't forget to adjust your trade parameters, in particular the time frame in Step 2 is the most important one! Loading daily data and telling ForexKiller to interpret it as a 5-min chart won't get you very far... This is a very common mistake among beginner Forex-Killer users and a source of major grief and "this s*** doesn't work" type of comments in forums and blogs...

Once you've entered/Loaded the prices into Forex Killer, hit the Calculate button. You will notice the progress bar will slowly expand to the right (see picture) as the Forex Killer software computes the long and short term signals.

"Short term" in FK terminology (see the Manual) refers to 5 min, 15 min, 30 min and 1 hour timeframes. Long term is any timeframe which is greater than 1 hour, such as 4 hr, 1 day and 1 week timeframe periods.

Forex Killer User Interface (Pic. 3)

When the calculation is done you will see your signals, along with the Stop Loss and Take Profit levels in the Result Signals section. In our example below we have BUY for both the Short and Long term signals. You can also see the probability percentages for a BUY vs. SELL below the Short and Long term graphs. When FK can not determine a distinct probability for a buy or a sell trade you will get a No Trade signal.

Forex Killer - Using The Signals (Pic. 4)

The next thing to do is go to your trading software and open a trade or two trades (BUY, in this scenario) then copy the Stop Loss and Take Profit levels from the Result Signals section of ForexKiller and apply them to your open a trade. Better yet, if your trading software allows it - apply the levels at the time of opening the trade. Meta trader allows this for sure, I haven't used FXCM for some time now but I think their Trading Station also allowed this.

You can trade only the short term signal generated by Forex Killer or only the long term signal or both - it is up to you. You may want to use the Trade Probability % to determine whether you want to trade both signals or just one of them.

If you get stuck, read the Forex Killer manual (click the big Help button) or click any one of the little help buttons which placed in each section (see pic.) and it will tell you what the numbers in that particular section mean and how to use them. For major problems use the phone number provided on the web-site, or their contact form/email or look online in Forex Killer blogs and discussion groups - there's plenty of info from users and chances are that someone has already ran into your problem and there is a solution!

If you want to try the Forex Killer System you can download it from this link here.