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.
Be aware: If there isn’t a breakout, the EA won’t open orders. Due to this fact, there shall be days when the EA doesn’t open orders.
Concerning 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, successful trades could have a lot decrease revenue in comparison with SL trades.
- Nevertheless, the win charge is constantly excessive at round 90-95%.
Be aware: 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 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.
Be aware: 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: $10Okay
- Revenue: $4M
- Revenue Issue: 2.35
- Win-rate: 96%
- Drawdown (DD): 14%
The EA began with a capital of $10Okay 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: $10Okay
- Revenue: $7.4K
- Revenue Issue: 1.5
- Win-rate: 94%
- DD: 14%
As you’ll be able to see, the EA received constantly from the start of the 12 months till March after which skilled a big decline. After that, the EA continued to win till Could and skilled consecutive drawdowns till July. So, when you purchased the EA through 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.
Be aware: You can not consider the EA primarily based solely on the short-term drawdown from Could to July. All the time be ready for vital drawdowns with shedding trades.
2.3/ 2016
- Begin: $10Okay
- Revenue: $16Okay
- 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, when 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 $16Okay.
2.4/ 2017
- Begin: $10Okay
- 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 big 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. Nevertheless, 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: $10Okay
- Revenue: $15Okay
- Revenue Issue: 2.96
- Win-rate: 97%
- DD: 8%
2.5/ 2019
- Begin: $10Okay
- Revenue: $7K
- Revenue Issue: 1.78
- Win-rate: 95%
- DD: 10.73%
2.6/ 2020
- Begin: $10Okay
- Revenue: $8K
- Revenue Issue: 1.78
- Win-rate: 95%
- DD: 8%
2.7/ 2021
- Begin: $10Okay
- Revenue: $3.7K
- Revenue Issue: 1.46
- Win-rate: 95%
- DD: 9%
2.8/ 2022
- Begin: $10Okay
- Revenue: $10Okay
- Revenue Issue: 1.99
- Win-rate: 95%
- DD: 9%
2.9/ 2023
- Begin: $10Okay
- 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
- One of the best revenue 12 months: 2023
Good for long run when you run the EA for 1-3-5 and even 10 years.
Disadvantages:
- A single shedding commerce is far bigger than a single successful commerce
Not good within the brief 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 constantly constructive outcomes from 2015 till now, indicating a long-term profitable efficiency.
Nevertheless, it isn’t proof against prolonged drawdown durations, lasting from a number of 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 determine to purchase an EA, it’s essential to perceive the dangers in buying and selling.
1. The longer term can’t be identified, solely chances primarily based on previous knowledge can be utilized to foretell the long run, not 100% accuracy.
2. EA can encounter drawdowns at any time
3. A very good EA is one which creates earnings in the long run (1-3-5-10 years), not one which creates earnings within the brief time period.
4. Quick-term drawdowns in EA should not 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.
