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.
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.
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.
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.
Run on the GBP/USD for the 5 minute charts, this EA actually produced amazing results, turning a mini account with $6000 into $8400 in 2 months (Aug + Sept).
However, run on a mini account with $3000 it got a margin call after 17 days.
When it opens a position it doesn’t use a stop loss by default, and it opens a new position (same direction) every time the price goes against you by 50 pips.
This is certainly not an EA for the faint of heart or short of money!
you are absolutely right!! back-tests are worthless. and forward-testing is the only way to tell if the EA is any good at all before letting it run on real money.
it’s dangerous only if the EA trades with a very high risk. avoid martingale and scalping EAs and you should be safe. look for one that allows you to control your risks. some let you set your max risk in terms of % of your total capital for each trade, so you know the exact risk everytime it opens an order.
