Testing EA with Impressive Results

A few weeks ago a client of mine contacted me about a commercial EA he had been testing and was raving about how impressive the results were. He wanted me to check it out and see if I could figure out the strategy and algorithm it was using so that I could program something similar for him.

Well I got a copy of the EA and started running it on my . I let it run for a few days before even checking it but when I did I was pretty impressed. It hadn’t taken too many trades but every one of them was a winner. Of course the first thing I thought was ‘oh no this is another martingale EA with no stoploss that will eventually blow your account’, so I looked a little closer at the trades.

I dragged the closed orders from the history tab in metatrader 4 and dropped them on the chart so I could see the exact entries and exits and try to figure out what the strategy was and also the risk/reward.

The good news was that there was indeed a stoploss but the risk/reward was skewed and definitely not to every ones taste at 1:5. That in itself doesn’t negate this strategy or EA and if you can produce a long enough data sample and confirm that the strike rate warrants such a RR then you could have a winner.

So far the EA has been running for two weeks with 10 trades all of which have closed as winners. I only saw one that came anywhere close to hitting the stoploss but that managed to turn around and make a profit.

I checked out the back tests on the companies site and the hit rate looked pretty good. Now I obviously take the back tests with a grain of salt but those coupled with my brief test on demo definitely make this an EA I’ll keep running on my for a few months and check its progress.

If you want to check out the EA for yourself you can .

It’s called and the site has much more information, statistics and user testimonials.

Good luck in your trading and have a great new year.

Steve

NB: The above results were obtained forward testing EUR/USD M30 on a demo account (IBFX) during December 2009. If you are serious about testing an EA then don’t rely on MT4 strategy tester as it is notoriously unreliable.

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Category: MQL Programming