The assumption behind FAPT is that it is scalping during the low volume/low activity hours. Also the back testing is done with the same assumption and it shows "great" results. BUT... there is one factor that did not exist for most of the time that backtesting is done (until Nov 2008) -- FAPT itself.
Note that FAPT is supposed to be active during the low volume/low activity periods, but due to its popularity it added ca 40000 potential retail buyer/sellers to the equation. What's more all these people are zeroed in on just a couple of currency pairs and become active at more or less the same time (nothwithsanding the randomness of entries)...
Why is FAPT limited to these currencies only? The authors claim that they singled out the pairs that are optimal, but why not give us a choice to find it out on our own -- at least in the PRO versions -- if they really want to protect all the users who feel better off with the canned goods...
Last edited by pipdetector; 2009-04-27 at 02:20 PM.
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