Well, someone asked me to take a look at another very commercial expert advisor called Piptronic. I have to say I am getting a little bit tired of this type of ea seller. Piptronic's website is a reminiscent of all the other hyped expert advisor sellers with the pictures of happy traders and the common remarks of "How does $1,000.00 in 24 hours sound?". Well, if you ask me, a thousand dollar in 24 hours is very makeable depending on the size of your investment. If you invest ten million dollars in a T-bond you can do much better than that !
Now, I always try to give these people a chance regardless of what I think about their cheesy advertisement. First, I looked at their trade testing evidence. Their back testing sure looks regular to me, they are what you would expect from a very commercial expert advisor. The lot sizes are adjusted to risk about 5% of the account's balance and the backtested is conviniently narrowed to 2008. For those who aren't aware, 2008 was a very good year for trend following systems due to the large increase in volatility caused by the economic crisis (this is why you see the long straight line at the end). Why wouldn't they backtest to 2004, or even to 1999 ? Data is available to test accurately up until at least 2005, so why wouldn't they include it ? My best guess is because their system failed dramatically in much less volatile markets (2005-2006) hence they decided that it was not so good to show it !
Another thing that happens once you start looking closely a their backtesting results is that their risk to reward ratio is just too high. They risk about 10 times more than they profit, in other words, they need to win 10 out of every 11 trades just to break even. This type of ea is very common in the world of commercial expert advisors sold for such low amounts (and even for higher amounts!) they are experts that can perform extremely well in small periods of time, then they wipe the accounts they started with.
Another thing that crossed my mind is that their forward testing statements only go up to Novemeber, why ? Why don't they include testing up to today if that would help them increase their credibility ? Moreover, Why isn't there a live account with investor access available for the prospect buyers ? I don't know the answers to these questions but they make me suspicious enough about the expert advisor. In my opinion, this expert advisor is not worth buying as there is not enough proof of it's profitability and it's risk to reward ratio is far too bad. Their testing information also seems conveniently limited, something which makes me feel uneasy about the software.
There are several free alternatives to these commercial expert advisors that are far more robust and can indeed make you consistently profitable, to learn more about other free and commercial expert advisors I have considered worth buying, tested and reviewed please consider buying my ebook on automated trading or subscribing to my weekly newsletter to receive updates and check the live and demo accounts I am running with several expert advisors. I hope you enjoyed the article !
Now, I always try to give these people a chance regardless of what I think about their cheesy advertisement. First, I looked at their trade testing evidence. Their back testing sure looks regular to me, they are what you would expect from a very commercial expert advisor. The lot sizes are adjusted to risk about 5% of the account's balance and the backtested is conviniently narrowed to 2008. For those who aren't aware, 2008 was a very good year for trend following systems due to the large increase in volatility caused by the economic crisis (this is why you see the long straight line at the end). Why wouldn't they backtest to 2004, or even to 1999 ? Data is available to test accurately up until at least 2005, so why wouldn't they include it ? My best guess is because their system failed dramatically in much less volatile markets (2005-2006) hence they decided that it was not so good to show it !
Another thing that happens once you start looking closely a their backtesting results is that their risk to reward ratio is just too high. They risk about 10 times more than they profit, in other words, they need to win 10 out of every 11 trades just to break even. This type of ea is very common in the world of commercial expert advisors sold for such low amounts (and even for higher amounts!) they are experts that can perform extremely well in small periods of time, then they wipe the accounts they started with.
Another thing that crossed my mind is that their forward testing statements only go up to Novemeber, why ? Why don't they include testing up to today if that would help them increase their credibility ? Moreover, Why isn't there a live account with investor access available for the prospect buyers ? I don't know the answers to these questions but they make me suspicious enough about the expert advisor. In my opinion, this expert advisor is not worth buying as there is not enough proof of it's profitability and it's risk to reward ratio is far too bad. Their testing information also seems conveniently limited, something which makes me feel uneasy about the software.
There are several free alternatives to these commercial expert advisors that are far more robust and can indeed make you consistently profitable, to learn more about other free and commercial expert advisors I have considered worth buying, tested and reviewed please consider buying my ebook on automated trading or subscribing to my weekly newsletter to receive updates and check the live and demo accounts I am running with several expert advisors. I hope you enjoyed the article !
Posts
No comments:
Post a Comment