Forex Crescendo Review

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Forex Crescendo is an Expert Advisor created by Andrea Salvatore. The EA was released in late September 2010. This is a grid trading system meaning that there is no stop loss and depends on the trend condition to enter trades. The good thing is that it has money management parameters in place for the trader to specify so that the trader knows his own risk exposure when trading.

The system claims to be able to have an average return of 5-15% per month with a maximum temporary draw down of about 25% of the balance on default settings. And that the 25% maximum drawdown is the “worst case scenario”.  Usually a temporary 10% drawdown will be encountered most of the time.

On average, the EA can open up to 2 orders per day depending on the settings which will be further highlighted in this review later. Each opened trade might last a few days depending on the trend condition before closing. Backtest could not be done on our side as results produced were inaccurate and we will be focusing on forward test result more.

This EA other than being an automated strategy also is an semi-automated EA with options for user to choose especially setting the trend for the EA to trade which allows the user to have his say in where he thinks the trend is heading. In the automated mode, the trend is automatically identified by the EA.

Reviewed on : 5th October 2010
EA Type: GridTrading System
Trade : GBP/USD, USD/Jpy (on any timeframe)
Price: $ 147
Payment Processed by Clickbank and comes with a 60 day Money back Guarantee Full Refund

Backtest

The people at Forex Crescendo used Dukascopy data to generate their backtest result as the EA is trading on multi-currencies and MT4 is unable to perform such a backtest. They also said that the data from the MT4 platform are poor and will not be able to have a reliable backtest for Crescendo. So for us here at FX EA Review will be focusing more on the forward test to tell us the story.  So we analyze what Forex Crescendo had provided for us:

Summary of Backtest and Forward Result provided from Crescendo Team

Trade Analysis (based on Backtest Result):

Order Type: Market Order
Take Profit : Depending on user initial account balance and lot size set
Stop Loss: No stop loss but comes with a maximum total drawdown parameter that user can set
Trading time:  Depending on the frequency parameter user has set for EA to check for trade conditions; trade can last from few hours to days
Maximal Drawdown per year:  below 20%
Profitable Trades: 72%
ROI : Max Drawdown = 4 : 1

Money Management

Forex Crescendo EA allows system user to trade with a fixed lot (0.01 lot for every $1000 deposited) or specifying the % to risk based on user available equity value.  Another feature is the max_total_DD parameter for user to adjust the maximum drawdown loss on actual balance before closing of all the orders for all pairs.According to the creators, the strategy is recommended to trade at its default settings with a few tweaks to maximize its potential.

Ease of Use

It includes a easy-to-understand setup manual. It explains EA installation, parameters and recommended settings.
You will be able to watch videos on their members’ portal.

Parameter to Set:

username – your email which bought this software

password – clickbank receipt code

initial_balance – user initial deposit

order_step – The minimum amount of pips between last open order and the current one. Used by Crescendo to open a new order

target_profit – Target profit in terms of dollars. This target will be based on the initial_balance value and the lot size keyed in (eg. $1000 account with 0.01 lots will have a setting of  target_profit of $4, $10000 with 0.1 is $40 and so on)

frequency – This is to allow Crescendo to check if the conditions to open new trades have been met at a certain number of intervals specified by the user.

manual_trend – this parameter allows user to set to true if they want to force the EA to open trades in specific direction to be determined by user. If set to false, EA will open trades using its own internal judgement

trend_direction – Allows user to only determine their own trend direction based on their own analysis but trading with Crescendo strategy

lot_size – lot size used to opening of trades. Suggested lot size is 0.01 for every $1000 in account (fixed lots)

risk_percent – if user want  lot size to adjust accordingly to available equity value, user can change the setting to non zero value

max_total_DD – % that is the maximum loss of the actual balance that user can tolerate before EA start to close all orders for all pairs

slippage – maximum deviation user  will allow for price that EA is using to open order and the price the broker is giving to open the order

Forward Test

Our forward test will be using the default settings of Crescendo with initial deposit of $10000.

GBP/USD

GBP/JPY

Weakesses (if Any)

The only thing right now is the time period of drawdown that the user may encounter using a grid trading strategy and without a stop loss. The fact that if the user has indicated the max_total_DD, there shouldn’t be any problem unless the user is uncomfortable with the default drawdown set on default which is 30%.

Conclusion

This EA seems promising with a far better result from the creators live result compared to its backtest result and the claim of being able to have steady ROI each month with low drawdowns encountered.

The introduction of proper money management in a fully automated EA system especially in a grid trading system is a important move and we are glad that it gives users more control of their money they are trading on EA.

If our 3 months forward test somehow do matches with what Forex Crescendo has claimed it to be,  then this might be the EA that will stay for a very long time.

8/10

Regards,

Charlie

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