Rebate King 19 EAs Portfolio
Don’t Buy an EA Unless It Meets These 9 Criteria
Is it being tested with a higher spread to ensure robustness? It is important to test your EA with a higher spread to ensure that it is not a broker-dependent EA.
Has it been tested with more than a 10-year period? Don’t get fooled by EAs that are curve fitted over a few years. How does it perform during 2002 Equities Sell-off, 2006 Emerging-Market Crash, and 2008 Subprime Meltdown?
Is it still profitable when tested with fixed 0.1 lot? This test will eliminate martingale, grid, and average trading. Don’t get fooled by the promises of easy money and outrageous gain.
Does it make more than 500 trades during a 10-year period? With fewer trades, the EA is more likely to be curve fitted, and it does not meet statistically the law of large numbers.
Does the largest winner of this EA account for more than 5% of the total profit? Developers tend to select large trends for most of their EAs’ profits. A large trend does not occur all the time, and this is known as selective bias. So avoid EAs with large take profits and large stop loss.
Is it providing similar backtesting results for Open Prices, Control Points, and Every tick? If it is only profitable with Every Tick, then this EA is NOT robust. With different brokers, price feeds, internet connections, and etc., this EA will tend to lose money unless everything is under ideal conditions which are not likely to occur with online trading. You must take Murphy’s Law into consideration.
Do its backtesting results match up with its real time trading results? You may look at 6-12 months of a profitable trading statement, but the true test is over a long term 10 years backtesting. You must ensure that your backtesting results are valid. Read our MT4 post on comparing live and backtesting results here: https://goo.gl/m6ZCVW
Does it trade based on multiple timeframes to capture the different trends of the market volatility? Using multiple timeframes, it will reduce the overall drawdown of your trading results.
When tested with fixed lot, does it provide a return/drawdown ratio greater than 25 to 1? You will have an excellent EA if your reward to risk ratio is greater than 30.
Why is Rebate King your FX solution?
Rebate King meets and exceeds all nine criteria above, and we invite you to test it for yourself. This Expert Advisor is designed and backtested to provide you with more than 200,000 pips trading edge with the EURUSD. It has been tested from 2000 to 2015 (15+ years) for robustness under different market conditions and has generated more than 18,000 trades to avoid curve fitting. Your 200,000 pips trading edge has 19 independent trading strategies which you can manually turn on and off at any time. It has a Return/Drawdown ratio of 36.7 to 1 and a profit factor of 1.32.
- Broker: Spread ranging from 1.0-4.0 pips.
- Symbol: EURUSD M1 or M15
- Lotsize: 0 = compounding, 0.1 = fixed lot
- Risk: 0.05 = 5% per trade
- _15_Minute_EA1: True = ON, False = OFF
- _15_Minute_EA2: True = ON, False = OFF
- _15_Minute_EA3: True = ON, False = OFF
- _30_Minute_EAxx: True = ON, False = OFF
- _60_Minute_EA19: True = ON, False = OFF
Why did we choose the name Rebate King?
We tested our EA with 3.0 pips for the EURUSD. If you are trading daily to obtain rebates from your brokers or IBs, then we are your ultimate solution. What if your broker offers 3 pips spread with 2 pips rebates, you can potentially earn additional 36,000 pips on top of our 200,000 pips trading edge. We make lots of trades, which mean more rebate profits to you. Our system is based on modified Smooth Moving Averages, modified WPR, and modified CCI. You can read more about our trading philosophy in our book entitled "The Bull, the Bear, and the Baboon - FX Lessons Learned the Hard Way."
Winsor Hoang is the author of "The Bull, The Bear and The Baboon – FX Lessons Learned the Hard Way", a former Commodity Trading Advisor (CTA) and an automated trading researcher since 2003. Winsor actively works with several high profile mathematicians, statisticians, computer scientists, and computational finance specialists.