Question about an EA

[fx-tiger]

Hello everybody,

Since a few weeks I'm communicating with a company that offers an EA that - according to them - make 1% a day. I'm currently running the EA on a demo-account.
(They send me a new version of the EA every trading day).

I'm skeptical about this and I was wondering if anybody at this forum can take a look into the EA-file below (which I received from the company) and tell me based on what the EA initiate trades.

You can find the EA-file @ www.vmertens.be/zigzagsa257.mq4

The company also told me that the EA's recieve trading signals by 'ping signals' from the company's server. Is this correct?

Thanks a lot in advance, guys!
Vincent.

[LasVegasForex]

Have you back tested it? I would foward test it with a demo account that uses an MT4 platform other than the one you are using now. EA's are very dangerous and you nead to monitor it.

Try it live with micro lots

[nesmithdj]

Why do you want to use an EA? You should learn how to trade for yourself. Knowing how to trade is a great skill to have. You are robbing yourself by using an expert advisor.

[LasVegasForex]

I have it complied
What is the time frame and pair?

[LasVegasForex]

AI back tested 4 Hr charts from 4-2001 to 11-2002. All ticks where used and it took a 10,000 account to 10,788. So it made 788$ in a year and a half. The max drawdown was 12% ( not bad) It made 239 trades using micro lots on my mini account. So 10 cents a pip.

More to follow.

[Xaron]

Originally Posted by LasVegasForex

AI back tested 4 Hr charts from 4-2001 to 11-2002. All ticks where used and it took a 10,000 account to 10,788. So it made 788$ in a year and a half. The max drawdown was 12% ( not bad) It made 239 trades using micro lots on my mini account. So 10 cents a pip.

More to follow.

Wow... So it made 7,8% in one and a half year with a drawdown of 12%? And that's "not bad"?

Regards - Xaron

[LasVegasForex]

Originally Posted by Xaron

Wow... So it made 7,8% in one and a half year with a drawdown of 12%? And that's "not bad"?

Regards - Xaron

I ran it on 30MIN EUR/USD from 5-2006 to current and it went from 10,000 to 9,795. So it lost on this one.

It would really hepl if the poster would let me know the time frame a and pair.

I will do the 1HR of the GPB/USD next

[LasVegasForex]

Originally Posted by Xaron

Wow... So it made 7,8% in one and a half year with a drawdown of 12%? And that's "not bad"?

Regards - Xaron

Relatively speaking to EA's this is not that bad.
The S&P500 outperforms this.

[woodwood]

Hey guys,

I am an acquaintance of Vincent. The EA runs on the pair GBPUSD on a 5 min graph. Hope you can test the EA and let us know. Thanks!

[LasVegasForex]

I ran it over the las 3 months on the USD/CHF 5 min, all ticks. Used 1,000 balance on .10 lots. It made a whole 26$ in 3 months.

Strategy Tester Report

zigzag

InterbankFX- (Build 210)

Symbol USDCHFm (US Dollar vs Swiss Franc)

Period 5 Minutes (M5) 2007.06.28 15:10 - 2007.09.24 14:55

Model Every tick (the most precise method based on all available least timeframes)

Bars in test 17434 Ticks modelled 522399 Modelling quality 43.70%
Mismatched charts errors 0

Initial deposit 1000.00

Total net profit 29.84
Gross profit 76.89
Gross loss -47.05

Profit factor 1.63
Expected payoff 1.76

Absolute drawdown 2.55
Maximal drawdown 79.90 (7.39%)
Relative drawdown 7.39% (79.90)
Total trades 17
Short positions (won %) 4 (100.00%)
Long positions (won %) 13 (61.54%)
Profit trades (% of total) 12 (70.59%)
Loss trades (% of total) 5 (29.41%)
Largest profit trade 7.78 loss trade -17.58
Average profit trade 6.41 loss trade -9.41
Maximum consecutive wins (profit in money) 11 (74.17)
consecutive losses (loss in money) 5 (-47.05)
Maximal consecutive profit (count of wins) 74.17 (11)
consecutive loss (count of losses) -47.05 (5)
Average consecutive wins 6
consecutive losses 5