Review on: 14th April 2010

Broker Platform : Metatrader 4

Traded on: 4 hr Usd/Cad Pair

Back-test Generated With : Alpari UK

Price : $97

Refundable: 60 Day Money-back Guarantee

Stealpips backtest showed that it uses martingale money management which double it’s risk when a loss trade happens. That means if you risk 10% per trade, if loss occur,  a bigger position is entered in the next trade so that it can recover losses from immediately. However the disadvantage to this strategy happens when a subsequent loss is incurred, now you lose 20% of your equity (10% X 2 ). If subsequent trade also suffered a loss, it will be 40%  loss of account equity (20% X 2 ). You can calculate from then onwards, your account may be wide out.

When tested on Alpari Uk, we discovered that this EA has more than 80% maximal drawdown in 3 out of 4 years backtested. What it meant is, there is a very high chance that investor will lose more than 80 % of his money if he used Stealpips robot to trade over these period. These statistics are obtained from 2006 – 2010. Although backtest performance is not indicative of future performance, if a fx robot does not made it in the history, it will be highly indicative that it will not perform well in live testing.

Backtest generated with original settings, from 2006-2010

Year 2006-07

Year 2007-08

Year 2008-09

Year 2009-10

You can download our backtests below:

StealPipsStrategyTester

Foward Test

Support

We contacted support and verify our results with them. They denied and replied that our backtests weren’t true. We generated a few more times and even check with our friends for verification. Our backtest showed 0 mismatch error and 90% modeling quality. The problem shouldn’t lie with us but their ea strategy. Support personnel responded with the exact messages when contacted 3 times on the same problem. It showed that they are  poorly trained or they are using template answers in handling customers service.

Conclusion

1. Forward tests at salespage were stopped on 26th March 2010. (only showing 100% winning trades) – no losing trade was observed

2. Backtest results does not reflect that of salespage

3. Trading vendor upsell customer another EA claimed to work better than those seen on the sales page.

4. 80% Maximum drawdown found in 2007-2008, 2008-2009 , 2009-2010

1/10

On the above conclusion, we believe that Steal Pips is a possible scam. Even if it is not, trading live with this robot is not adviseable because the chances of you losing 80% of your investment money is very high.

Regards,

Warren Seah

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