I have been asked by some of my newsletters subscribers to take a good look into renegadefx's Chameleon expert advisor trading system. Of course, this is not the first time my eyes have shifted to their expert advisor website but I had refrained from reviewing them until they showed enough information so that I could issue my opinion about their system.
The first thing I noticed abou the Chameleon expert advisor is that it is really expensive. Now, this has nothing to do with it's profitability but it's price is far superior to the average ea which is between 100 and 400 USD. Creators that put such high prices on expert advisors usually consider that they are offering something much better than what the competition is selling. However, if the ea is actually profitable, their price would not be so high to pay.
When starting to analyze the way the ea trades according to their back and live testing I realized that most of the trading strategies used by this expert advisor often hold large amounts of open draw down. You can see that most of their trading strategies hold open draw downs far superior to their already adquired profits. The most profitable strategies, such as the martingale, is based on taking huge amounts of risk at certain times so it is obvious that it is highly prone to blow an account.
In my opinion, having such a large amount of acumulated draw down is an excesive "transparent" risk. The thing with this type of experts is that the true maximum draw down is "hidden" as it is never actually realized. Nonetheless, the experts are at some point or another losing very large chunks of capital. For some of the Chameleon strategies shown in live testing this can be as huge as 10 or 15 times the amount of already realized profits. Another interesting factor is that backtests are conveniently cut to one year. I have never considered this a good sign as it often point to previous years being unprofitable with the same settings.
I would not consider this ea worth buying as there are several lower priced expert advisor which offer more trading evidence and less suceptibility for the accumulation of high open draw downs. If you would like to learn more about automated trading and other free and commercial expert advisors I have bought 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 !
The first thing I noticed abou the Chameleon expert advisor is that it is really expensive. Now, this has nothing to do with it's profitability but it's price is far superior to the average ea which is between 100 and 400 USD. Creators that put such high prices on expert advisors usually consider that they are offering something much better than what the competition is selling. However, if the ea is actually profitable, their price would not be so high to pay.
When starting to analyze the way the ea trades according to their back and live testing I realized that most of the trading strategies used by this expert advisor often hold large amounts of open draw down. You can see that most of their trading strategies hold open draw downs far superior to their already adquired profits. The most profitable strategies, such as the martingale, is based on taking huge amounts of risk at certain times so it is obvious that it is highly prone to blow an account.
In my opinion, having such a large amount of acumulated draw down is an excesive "transparent" risk. The thing with this type of experts is that the true maximum draw down is "hidden" as it is never actually realized. Nonetheless, the experts are at some point or another losing very large chunks of capital. For some of the Chameleon strategies shown in live testing this can be as huge as 10 or 15 times the amount of already realized profits. Another interesting factor is that backtests are conveniently cut to one year. I have never considered this a good sign as it often point to previous years being unprofitable with the same settings.
I would not consider this ea worth buying as there are several lower priced expert advisor which offer more trading evidence and less suceptibility for the accumulation of high open draw downs. If you would like to learn more about automated trading and other free and commercial expert advisors I have bought 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 !
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