I am developing a security software and want to obfuscate my java code so it will become impossible to reverse engineer. What is the most reliable java obfuscator ?
First, you really need to keep in mind that it's never impossible to reverse-engineer something. Everything is hackable. A smart developer using a smart IDE can already get far enough.
Well, you can find here a list. ProGuard is pretty good. I've used it myself, but only to "minify" Java code.
I think that Proguard is the best. It is also possible to integrate it with your IDE (for example NetBeans). However, consider that if you obfuscate your code it could be difficult to track problems in your logs..
I used to work with Klassmaster in my previous company and it works really well and can integrate pretty good with build systems (maven support is excellent). But it's not free though.
As said elsewhere on here, proguard is good, but what might not be known is that there is also a third-party maven plugin for it here http://pyx4me.com/pyx4me-maven-plugins/proguard-maven-plugin/...I've used them both together and they're very good.
If a computer can run it, a suitably motivated human can reengineer it.
We've had much better luck encrypting the jars rather than obfuscating. We use Classguard.
Check out my article Protect Your Java Code - Through Obfuscators And Beyond for a discussion of obfuscation vs three other ways to make the reverse engineering of your apps more expensive, and a collection of links to tools and further reading materials.
It is true that it is always possible to reverse engineer some code, just like it is impossible to protect a house in order so nobody can ever steal from it. That does not keep me from locking the door, though. Actually, I am not in the java world, I use BitHelmet for .net.