This EA stands out as one of the most popular EAs on a site. It’s not only featured prominently on the main page but also garners consistently high ratings, with every user awarding it 5 stars. According to the vendor, the EA incorporates sophisticated algorithms and leverages deep learning technology. He shared the MT5 tick data backtest report, which demonstrated steadily increasing yield curves for EURUSD, AUDUSD, and GBPUSD.
Chart 1 About the EA
Chart 2 Backtest of EURUSD provided by the vendor
Upon downloading the demo version, we conducted a Tiackdata backtest on EURUSD using MT4. The yield curve closely resembled the vendor’s version, applying default settings with a fixed spread of 1.0 pip and no slippage.
Chart 3 Tickdata Backtest From 2010
The EA priced at $938 is slightly more expensive than other options on the site, yet it’s seen as a Holy Grail due to its consistent profitability. Backtesting indicates that a $10,000 investment yielded $130 million over 13 years with EURUSD. Thus, the initial investment of $938 appears very affordable. We were certainly thrilled.
Nonetheless, once the initial excitement subsided, we posed a new question: Why would the vendor offer such a reliable and lucrative EA for only $938 instead of using it for personal trading? Moreover, in an effort to responsibly manage our finances, we altered Tickdata timing and conducted retests with identical quotes.
A surprising outcome occurred as all backtests showed a steady decline in performance.
Chart 4 Tickdata Backtest From 1975
Chart 5 Tickdata Backtest From 1982
When evaluating the backtest outcomes before and after altering the data’s timing, it is important to acknowledge that this could be a potentially scam EA.
Conclusion
1. Before buying any commercial EA, ensure you conduct a tick data backtest.
2. Adjusting the tick data timing is crucial for testing purposes.
3. Even if the outcomes are favorable, it’s important to adopt a different mindset: consider the author’s viewpoint and psychology. Imagine you’ve developed a reliable and profitable EA after years of research and practice; why would you opt to sell this EA rather than trade it yourself? Furthermore, most non-DLL EAs can be easily decompiled within minutes… Reflect on the various potential issues from that standpoint.
About the Author
YueWang, Founder of Linocapital, Founder of TheDailyFX.com.
Contributor of FXStreet since 2018.
Member of the Society of Technical Analysts(UK) since 2020.
Creator of Seagull EA, Beetle EA, and Snail EA.
Creator of Tendency Forex System, published in 2021 in Market Technician, the Journal of UK Society of Technical Analysts (Issue 90, Page 36-48).
Creator of Razor Forex System, published in the Journal of Stock&Forex Trading (ISSN 2168-9458), which was forwarded by the Quarterly Newsletter of International Federation of Technical Analysts (IFTA).