1/ Overview
The EA makes use of an computerized 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.
Observe: If there is no such thing as a breakout, the EA is not going to open orders. Due to this fact, there will probably 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 could be set within the enter settings.
- It additionally makes use of a trailing cease to repair revenue.
- Typically, profitable trades could have a lot decrease revenue in comparison with SL trades.
- Nevertheless, the win price is persistently excessive at round 90-95%.
Observe: Please perceive the Threat-Reward (RR) idea in buying and selling to keep away from confusion about why a single shedding commerce could be higher in dimension than a single profitable 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.
Observe: This can be 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 grasp the outcomes for annually.
2.2/ 2015
- Begin: $10K
- Revenue: $7.4K
- Revenue Issue: 1.5
- Win-rate: 94%
- DD: 14%
As you may see, the EA gained constantly 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, in the event you purchased the EA throughout the interval from Could to July, you’ll have skilled consecutive losses. Nevertheless, instantly after that, the EA continued to win till September, ending the 12 months with a $7.4K revenue.
Observe: You can not consider the EA based mostly solely on the short-term drawdown from Could to July. All the time be ready for important drawdowns with shedding trades.
2.3/ 2016
- Begin: $10K
- Revenue: $16K
- Revenue Issue: 2.08
- Win-rate: 95%
- DD: 11%
The win price continues to be 96%, and we additionally see a collection of three drawdowns in March, July, and October. So, in the event you 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 purple highlighted areas. The EA continued to win till February 1st after which had a loss, taking away a major quantity of revenue, nearly 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. Nevertheless, it nonetheless ended the 12 months with a $8K revenue.
Equally, examine the years 2018, 2019, 2020, 2021, 2022, 2023, and 2024 under.
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 price
- Revenue issue starting from 1.7 to 4.88
- The perfect revenue 12 months: 2023
Good for long run in the event you run the EA for 1-3-5 and even 10 years.
Disadvantages:
- A single shedding commerce is way bigger than a single profitable 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 constructive outcomes from 2015 till now, indicating a long-term profitable efficiency.
Nevertheless, it isn’t proof against prolonged drawdown intervals, lasting from a number of days to a number of months. This can be a short-term draw back that’s inevitable when investing in any asset.
If an EA claims to have a 100% win price, 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, it is advisable to perceive the dangers in buying and selling.
1. The longer term can’t be identified, solely chances based mostly on previous knowledge 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 earnings in the long run (1-3-5-10 years), not one which creates earnings within the quick time period.
4. Brief-term drawdowns in EA are usually not an indication of weak spot; take a look at the long run.
5. Use a small danger to make sure security in buying and selling.
