What are performance values of good EAs?

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Hello Everyone,

how many percent profit does a good EA make per month/year?

thx,

haemse

 
I'd seen a magazine where the award winning traders produce returns somewhere around 30% per year. I find this funny considering allot of people buy into the hype of turning their $1k into 100k by year end.
 

OK, what about this?

https://championship.mql5.com/2011/en

Are they not relevant for real trading?

 
Did you look at their draw-downs? It's by share luck that most of those survived. Next year, a whole bunch of new Luckies :)
 
haemse:

OK, what about this?

https://championship.mql5.com/2011/en

Are they not relevant for real trading?

Would be interesting to check their results after a full year of trading.
 

But this one seems to be very effective and stable ... equity is always very close to the balance ...

https://championship.mql5.com/2011/en/users/Tim/reports

 
haemse:

But this one seems to be very effective and stable ... equity is always very close to the balance ...

https://championship.mql5.com/2011/en/users/Tim/reports

How can you see that? (red line is the linear regression of the balance, blue is the balance)

BTW:

Maximal Drawdown

The money drawdown shows the maximal drawdown fixed in money terms and is the largest difference between the last maximum and the current minimum. It can exceed the absolute drawdown and helps to see the amount of possible loss even for a rather profitable trading. Its value at the moment of reaching this drawdown is given in percents in brackets. Calculated by Equity values.

$ 22 426.96 (58.31 %)

Stable is something different. In the case of TIM it looks like 3 losers in a relative short period of time caused a drawdown of ~60%. So what are the odd's of 6 or 10 loosers in a row?

The strategy of tim looks pretty good, however the risk he is using in the championship probably is way to high for real trading.

 
haemse:

how many percent profit does a good EA make per month/year?

"Good" depends on the amount of risk you are prepared to take. 30% per year is very good if you have strict drawdown requirements.

The results you mention at https://championship.mql5.com/2011/en/users/Tim/reports lose more than 50% of the account at one point (equity declining from approx $38K to under $20K). In real life, without the benefit of hindsight, would you have kept the EA running at the point that it was down 50%, or would have turned it off? And, seeing those results now, would you trust the EA not to blow your whole account up at some point in the near future?
 

I agree with all the comments above. Tim's Relative Draw-down of 58.31% (almost 60%) is Psycho Zone for most people. If you started trading an EA with 100k and then it lost 60k would you keep trading the system. Easy to do when it's monopoly money. Harder when it's real money.

The balance curve looks good but it's Equity which really matters. That EA was probably closer to tapping out than you think considering the broker would not let you go down to 0$ before they close you out. Something like >30% of the used margin have to support the account.

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