MT5: https://www.mql5.com/en/market/product/113186?source=Site+Market+My+Products+Page
1/ Overview
- The EA uses fixed SL, TP, which can be set in the input settings.
- It also uses a trailing stop to fix profit.
- Generally, winning trades will have much lower profit compared to SL trades.
- However, the win rate is consistently high at around 90-95%.
2/ Let's start analyzing the back-test results of EA Diamond Scalper X.
The back-test uses Autolots and Medium risk. Other setting params are default.
- Start: $10K
- Profit: $4M
- Profit Factor: 2.35
- Win-rate: 96%
- Drawdown (DD): 14%
The EA started with a capital of $10K and reached a profit of $4M in 9 years.
- Start: $10K
- Profit: $7.4K
- Profit Factor: 1.5
- Win-rate: 94%
- DD: 14%
As you can see, the EA won continuously from the beginning of the year until March and then experienced a significant decline. After that, the EA continued to win until May and experienced consecutive drawdowns until July. So, if you bought the EA during the period from May to July, you would have experienced consecutive losses. However, immediately after that, the EA continued to win until September, ending the year with a $7.4K profit.
- Start: $10K
- Profit: $16K
- Profit Factor: 2.08
- Win-rate: 95%
- DD: 11%
The win rate is still 96%, and we also see a series of 3 drawdowns in March, July, and October. So, if you bought the EA during these times, your account would have experienced losses. But these are short-term. The EA still ended the year with a profit of $16K.
- Start: $10K
- Profit: $8K
- Profit Factor: 1.79
- Win-rate: 95%
- DD: 11%
Pay attention to the red highlighted areas. The EA continued to win until February 1st and then had a loss, taking away a significant amount of profit, almost all of the year's profit. But that was still short-term. Immediately after that, the EA continued to win and traded sideways for 5 consecutive months with little or no profit. However, it still ended the year with a $8K profit.
2.4/ 2018
- Start: $10K
- Profit: $15K
- Profit Factor: 2.96
- Win-rate: 97%
- DD: 8%
2.5/ 2019
- Start: $10K
- Profit: $7K
- Profit Factor: 1.78
- Win-rate: 95%
- DD: 10.73%
2.6/ 2020
- Start: $10K
- Profit: $8K
- Profit Factor: 1.78
- Win-rate: 95%
- DD: 8%
2.7/ 2021
- Start: $10K
- Profit: $3.7K
- Profit Factor: 1.46
- Win-rate: 95%
- DD: 9%
2.8/ 2022
- Start: $10K
- Profit: $10K
- Profit Factor: 1.99
- Win-rate: 95%
- DD: 9%
2.9/ 2023
- Start: $10K
- Profit: $13.9K
- Profit Factor: 4.27
- Win-rate: 98%
- DD: 6.8%
2.10/ 2024
3/ Evaluation
- Consistent wins for 9 consecutive years
- High win rate
- Profit factor ranging from 1.7 to 4.88
- The best profit year: 2023
- A single losing trade is much larger than a single winning trade
4/ Conclusion
The EA backtest has shown consistently positive results from 2015 until now, indicating a long-term successful performance.
However, it is not immune to extended drawdown periods, lasting from a few days to several months. This is a short-term downside that is inevitable when investing in any asset.
If an EA claims to have a 100% win rate, it is deceptive and not reflective of reality.
A candlestick evaluation objectively suggests that this EA is worth trying and testing.
Warning: Things to know before buying EA
Before you decide to buy an EA, you need to understand the risks in trading.
1. The future cannot be known, only probabilities based on past data can be used to predict the future, not 100% accuracy.
2. EA can encounter drawdowns at any time
3. A good EA is one that creates profits in the long term (1-3-5-10 years), not one that creates profits in the short term.
4. Short-term drawdowns in EA are not a sign of weakness; look at the long term.
5. Use a small risk to ensure safety in trading.
