1/ Overview
The EA makes use of an automated dynamic breakout technique, used with the GBPUSD pair.
On common, if a breakout is detected every day, the EA will open purchase/promote cease orders.
Notice: If there isn’t any breakout, the EA won’t open orders. Subsequently, there will likely be days when the EA doesn’t open orders.
Relating to SL, TP, and trailing cease:
- The EA makes use of fastened SL, TP, which will be set within the enter settings.
- It additionally makes use of a trailing cease to repair revenue.
- Usually, successful trades can have a lot decrease revenue in comparison with SL trades.
- Nonetheless, the win charge is persistently excessive at round 90-95%.
Notice: Please perceive the Threat-Reward (RR) idea in buying and selling to keep away from confusion about why a single dropping commerce will be higher in dimension than a single successful commerce.
2/ Let’s begin analyzing the back-test outcomes of EA Diamond Scalper X.
The back-test makes use of Autolots and Medium danger. Different setting params are default.
Notice: It is a back-test, not actual outcomes, so it ought to be used for estimation or future prediction solely. It doesn’t assure 100% accuracy sooner or later.
2.1/ From 2015 to 2024
- Begin: $10K
- Revenue: $4M
- Revenue Issue: 2.35
- Win-rate: 96%
- Drawdown (DD): 14%
The EA began with a capital of $10K and reached a revenue of $4M in 9 years.
To grasp the back-test outcomes higher, let’s zoom in to know the outcomes for every year.
2.2/ 2015
- Begin: $10K
- Revenue: $7.4K
- Revenue Issue: 1.5
- Win-rate: 94%
- DD: 14%
As you’ll be able to see, the EA gained repeatedly from the start of the 12 months till March after which skilled a major decline. After that, the EA continued to win till Could and skilled consecutive drawdowns till July. So, for those who purchased the EA throughout the interval from Could to July, you’d have skilled consecutive losses. Nonetheless, instantly after that, the EA continued to win till September, ending the 12 months with a $7.4K revenue.
Notice: You can’t consider the EA primarily based solely on the short-term drawdown from Could to July. At all times be ready for important drawdowns with dropping trades.
2.3/ 2016
- Begin: $10K
- Revenue: $16K
- Revenue Issue: 2.08
- Win-rate: 95%
- DD: 11%
The win charge remains to be 96%, and we additionally see a sequence of three drawdowns in March, July, and October. So, for those who purchased the EA throughout these occasions, your account would have skilled losses. However these are short-term. The EA nonetheless ended the 12 months with a revenue of $16K.
2.4/ 2017
- Begin: $10K
- Revenue: $8K
- Revenue Issue: 1.79
- Win-rate: 95%
- DD: 11%
Take note of the pink highlighted areas. The EA continued to win till February 1st after which had a loss, taking away a major quantity of revenue, virtually all the 12 months’s revenue. However that was nonetheless short-term. Instantly after that, the EA continued to win and traded sideways for five consecutive months with little or no revenue. Nonetheless, it nonetheless ended the 12 months with a $8K revenue.
Equally, test the years 2018, 2019, 2020, 2021, 2022, 2023, and 2024 beneath.
2.4/ 2018
- Begin: $10K
- Revenue: $15K
- Revenue Issue: 2.96
- Win-rate: 97%
- DD: 8%
2.5/ 2019
- Begin: $10K
- Revenue: $7K
- Revenue Issue: 1.78
- Win-rate: 95%
- DD: 10.73%
2.6/ 2020
- Begin: $10K
- Revenue: $8K
- Revenue Issue: 1.78
- Win-rate: 95%
- DD: 8%
2.7/ 2021
- Begin: $10K
- Revenue: $3.7K
- Revenue Issue: 1.46
- Win-rate: 95%
- DD: 9%
2.8/ 2022
- Begin: $10K
- Revenue: $10K
- Revenue Issue: 1.99
- Win-rate: 95%
- DD: 9%
2.9/ 2023
- Begin: $10K
- Revenue: $13.9K
- Revenue Issue: 4.27
- Win-rate: 98%
- DD: 6.8%
2.10/ 2024
3/ Analysis
Benefits:
- Constant wins for 9 consecutive years
- Excessive win charge
- Revenue issue starting from 1.7 to 4.88
- The perfect revenue 12 months: 2023
Good for long run for those who run the EA for 1-3-5 and even 10 years.
Disadvantages:
- A single dropping commerce is way bigger than a single successful commerce
Not good within the quick time period, not appropriate for individuals who solely search revenue inside 1-2 weeks or 1-2 months
4/ Conclusion
The EA backtest has proven persistently optimistic outcomes from 2015 till now, indicating a long-term profitable efficiency.
Nonetheless, it’s not proof against prolonged drawdown durations, lasting from just a few days to a number of months. It is a short-term draw back that’s inevitable when investing in any asset.
If an EA claims to have a 100% win charge, it’s misleading and never reflective of actuality.
A candlestick analysis objectively means that this EA is value making an attempt and testing.
Warning: Issues to know earlier than shopping for EA
Earlier than you resolve to purchase an EA, you must perceive the dangers in buying and selling.
1. The longer term can’t be identified, solely possibilities primarily based on previous information can be utilized to foretell the long run, not 100% accuracy.
2. EA can encounter drawdowns at any time
3. EA is one which creates income in the long run (1-3-5-10 years), not one which creates income within the quick time period.
4. Quick-term drawdowns in EA will not be an indication of weak spot; have a look at the long run.
5. Use a small danger to make sure security in buying and selling.
