After my initial excitement about the Odyssey bot, my enthusiasm has been tempered. I expected the farm to thrive on the bot’s output, but that hasn’t happened yet.
A Discussion About Bots
This morning, I had the chance to talk with a seasoned investor who wanted an honest discussion about algorithmic trading bots. (That LinkedIn tagline, “Recovery Algorithmic Trader,” strikes again!) Unsurprisingly, they were hesitant to trust an algo trading bot to wisely manage their investment. With last year’s adventures still fresh in my mind, I shared what I would do if I were in their shoes.
My First Instincts: EFX’s Octane Bot
Initially, I recommended EFX’s Octane bot. After addressing their concerns about “sending money to another country,” they admitted they’d feel more comfortable using bots with a US-based broker. This allowed me to share my experiences from the past three weeks using the Odyssey bot.
Although I don’t use EFX’s US-based broker product (US-02), I keep an eye on its performance.
Using a US-Based Broker
When I opened my Forex.com account, I was told the leverage was 1:50. However, after speaking with a Forex.com representative, I learned it’s not that straightforward. Different currency pairs carry different risks, which affect the overall leverage available on the account.
Still, if you want to keep your money in the Us and use a trading bot, this is your options.
FIFO Rules and Their Impact
US brokers impose FIFO (First In, First Out) rules, which limit trading strategies. Hedging isn’t allowed, and the first trade in a pair must be the first trade closed.
The Odyssey bot operates within these constraints. It takes a lot of trades, but most are on small lot sizes (e.g., 0.1 or 0.01). While this limits potential gains, it also minimizes losses.
AI and Machine Learning in Bots
Both EFX and NURP emphasize the AI and Machine Learning components of their US-based bots. However, I haven’t yet had the opportunity to deeply analyze how this impacts trading.
Right now, the Odyssey bot has 79 open trades. In contrast, bots with higher leverage on non-US-based brokers often have fewer trades open at a time.
EFX vs. NURP: Costs
If you’re new to algo trading and considering investing with either EFX or NURP, expect to pay over $20,000 in licensing fees. Both companies also charge monthly fees, adding to the cost.
EFX vs. NURP: Reputation
With less than four weeks of observations, I can only rely on reputation. While neither company is perfect, EFX still gets my double thumbs-up. On the other hand, NURP is working to rebuild investor trust.
Final Thoughts: Odyssey Bot and My Choice
As I mentioned earlier, I’m currently operating the Odyssey bot. If both bots were priced the same and I had to choose based solely on the company, I would go with EFX.
That said, I’m optimistic that NURP will regain its footing and rebuild investor confidence.
