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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.

Category: MQL Programming

About the Author (Author Profile)

Steve Fleming has been a professional programmer and Internet professional for over 15 years. AutomatedTradingSoftware.com is a way to empower the non-programmers and offers a FREE 5 day E-course showing how to build an EA (expert advisor). Steve also offers his mql programming services at very competitive rates and has programmed many, many strategies both for himself and his ever growing list of satisfied clients.

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