This is a strategy created by Benjamin R.Cook. I am reviewing some of the information that makes this particular strategy different from the original Megadroid. In order not to reveal any of his strategy secrets, i am very careful in reviewing his way of using Megadroid so that his strategy copyrights are not infringed.

At the same time, providing you with enough information to decide whether this unique Megadroid strategy is for you.
What makes ADT different from Megadroid is that it introduces 3 charts with different gmt settings and trading parameters that allows ADT strategy to trade more than Megadroid default settings.

Initially the author has introduced 3 different ADT strategies to trade with Megadroid but due to some testing on his own, he decided to only recommend one of the strategies, the ADT overlap setup, which will be what we are going to focus on.

For the ADT strategy, the reference number is the key in trading with Megadroid. The reference numbers allow the Megadroid to identify it’s opened trades and which trades belong to which strategy (S1 or S2). Therefore, management for opened trades can be monitored by the expert adviser.

In the ADT overlap setup, the difference in reference number in the 4 respective charts will allow Strategy 1 (S1 – original strategy) and Strategy 2 (S2 – aggressive strategy) strategies to trade independently from the other charts ( i.e Chart 1 will have exclusive reference numbers only in this chart, Chart 2 will have another set of exclusive reference numbers in this chart and so on.). Thus, allowing many trades to be opened at the same time.

This will result in more trades than the original Megadroid setting. There might be also hedged entries where the pair can have both buy and sell orders opened due to the nature of the ADT overlap setup where the reference number plays a part.

1. Money Management

Yes there is money management involve where you specify the amount to risk for each trade as the EA you will be using is still Megadroid. Though the risk settings are recommended by the author due to his research for the ADT overlap setup.

2. Draw-down

For draw-down, the author has come up with a risk table with various draw-down values that gives a set of risk settings for the individual charts in the ADT overlap setup.

The table is concise and is updated quite often due to the ongoing research done by the author. This reflects the relevancy of the table to the existing market conditions. There is one thing about the risk table that we think could be improve on if the author could based on a larger sample size of his history data to determine his risk table.

3. Ease of use

Using the same Megadroid EA, the settings you have to configure are the 4 individual chart setups which is easy and shown clearly in his ebook together with his trade settings. One thing that traders might be confused is the configuration of  reference numbers in ADT setup so be sure to read the instructions in the manual carefully. For more explanation on the Megadroid parameters, you will have to refer to the Megadriod EA manual.

4. Honest Result

As the author frequently updates his risk settings for various draw-down levels, it is hard to compare using back-test results with the forward test results. Though we can still show you our own back-test and forward test result, but you have to take into consideration that we have followed the recommended settings by the author which is updated frequently.

Update 23th Nov 2009: Conservative settings are used trading this strategy and we are trading with 2 charts using advanced droid tactics strategy.

So means to say that there is no definitive conclusion whether the current setting is the best one. But one thing is for sure is that, we can take notice of the number of trades and the draw-down level on whether they are comparable to what the author has researched and tested on.

5. Weaknesses

As the ADT setup involves entering trades beyond the original Megadroid strategy, there will be risk involve as you will be more exposed to volatile market swings when the Asia session is nearing to the end.

Another is the risk table showing the various draw-down values with risk settings. We do not feel comfortable with the recommended risk settings by the author although he has done his research and testing on his part. With risk settings stated more than what we suggest to novice traders to start off with (2% per trade, 10% of the account equity per month), it is advisable for the novice trader to know what is the amount of risk he/she is able to take per trade. The table done by the author is there to assist you in making your decisions and serves as a gauge(max limit) to customizing your risk setting, it is absolutely not the “best” setting that one should follow.

Back-testing on his strategy requires some effort and time as it consists of 4 charts. It requires user’s due diligence to verify the hypothetical performance (as stated in author’s ebook) by forward testing.

ADT Overlap Setup can only be used with brokers that allowed Hedged Positions.

6. Support

Has a member area where all his latest updates are.

Forum for discussion and email support which replies back within 48hrs. His update on the ADT setup is at least done once a month.

Summary

This ADT setup is an optimization method done by Benjamin R Cook who has no affiliation to the Megadroid team. This ADT setup is meant to at least double your trades on your existing Megadroid EA and therefore may at least double your pips earned as well without exposing yourself to too much risk.

As the author does quite often updates his ADT setup, it shows that he is putting in effort to bring you the latest and relevant findings of his own to help support your decision.

Although the research is done by the author in optimizing the current Megadroid EA strategy, you should only take reference on what he did. Prior to any strategy being used on live accounts, you should do your due diligence in back-testing and forward test it on demo account before going on to live account and that your results might vary. This ADT setup will require one to potentially have many trades opened at any one time (mostly 2 trades at a time), so the trader will done his homework in determining the worst possible draw-down he can go up to.

Update March 2010:

Benjamin has Just announced his new version of ADT. it has not been made available for sale yet, but has been offered to his existing clients, of which I am one. I have just set it up on my test account and will be posting updates as to the performance.