Reviewed on : 10th May 2010
EA Type: Scalping System
Trade : Eur/Usd 1hr
Price: N/A (EA is not for Sale)

On the vendor’s website, it claimed that forex auto scalper ea averages over $307 net profit per day with an exceptional 94.3% accuracte rate. Our backtest results showed otherwise.

Backtest generated with Alpari Uk : ForexAutoScalperStrategyTester2006-2010

Backtest Settings:

Initial Deposit: US $10,000
Risk: 3%
UseDST: Enabled (default)
Reduce Lot: Disabled (default)
Reverse: Disabled (default)

2010

2009-2010

2008-09

2007-08

2006-07

Backtest Analysis

The equity curves from 2006-2010 shows that achieving 94% accuracy looks like a myth. Backtest results showed average 65% winning trades from 2006-2010. This statistic seems to deviate from what the vendor claimed at his website. At the same time, it is a must for scalping system to have a 85% or higher profitable trades in order to make money in the long term. Achieving a mild 65% win rate is not going to make money if you intend to trade live with this EA.

Maximum Drawdown: 20%  per year

An trader trading this system will have a tough emotional ride. From the look at the equity curve above, you may observe the erratic turns signifying the emotional high and lows experienced by the trader. Drawdown is too high comparing that with the returns you will make with forex auto scalper.

Return on Investment (2006-2010):  range from -2.2% to  +15% (per annum)

Risk: 3% per trade

Money Management

Forex Auto-Scalper EA allows system user to enter the amount of risk per trade by specifying amount in percentage risk per trade.

Ease of Use

It includes a easy-to-understand setup manual. It explains EA installation, paremeters and FAQ.

Parameter to Set:

GMToffset
For backtest only.

UseDST
For backtesting only. Broker’s daylight saving time may change and turning it on may reflect a more realistic  backtest result.

Risklevel
Risk per trade

ReduceLots
Default is False. When turn on, losing a trade will reduce lots and winning a trade will increase lot size. If this feature is turn on, EA will trade with the same lotsize after a lost trade which means it will only increase lot size but not reducing it.

MaximumLots
Specifies the maximum number of lots that will be traded when using scaled lots. With the default value, the expert advisor will restrict the maximum lot size to whatever the broker specifies.

Reverse
Default is disabled. System will close open positions if it detects a possible change in trend.

Honest Result (Backtest comparison with forward test)

Our team decides not to forward test forex auto scalper due to poor backtest performance.

It is your duty to first verify our backtest analysis with your own forward test before trading live.

Weakesses (if Any)

Backtest results deviates from what the vendor has claimed. 94% accuracy wasn’t achieveable based on our backtest results (if you can prove we made a mistake, we would like to change our views on this EA).

Low winning rate for a scalping system 65% and a high maximun drawdown.

Conclusion

4/10

Low win rate, high drawdown and low ROI.

Regards,

Warren Seah

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