Today I embark myself in another review journey to look at the Lerosa Pro Fx expert advisor. I must confess that this EA has been suggested a few times for me to review but I have left it aside because I wanted a little bit more development on the EA before I made any comments about it. Within this post I intend to write my actual opinion about the Lerosa Pro Fx system based on the actual trading evidence given by the authors.
Well, at first glance I though that the Lerosa FX Pro website was very good, aimed at people who knew the risk levels they were looking for and who are not looking to get rich overnight using automated trading systems. Definitely, the people at Lerosa have given this some thought. There is a big Risk Warning item on the menu, one of the first I might add, which is quiet odd for an expert advisor selling website.
But well, what I can I tell you about their trading system ? I have to confess that this is one of the first experts I have reviewed in a long while which I have not discared in the first 5 minutes of analysis, it actually took sometime to really get my opinions constructed about this trading system. The website owners provide one year backtesting of the expert with three different risk levels which is something I consider appropiate given the fact that people should consider how much draw down they would be able to sustain and balance it with how much profit they can get. Stoploss and take profit values are adequately separated from the entry price so one can consider backtesting of this ea as guidance for risk levels, as they probably represent the system's trading accurately.
Another thing I liked about the Lerosa FX Pro trading system is it's risk to reward ratio which, in an absolutely surprising turn of events for me, turns to be actually very small, of about 1:3, That is, the system risks 1 dollar for every 3 it makes, something which is always a positive characteristic of an expert. It's equity curve is what I would consider ideal but it's draw down levels are below it's predicted market exposure by my standards.
One thing that gets me thinking is why no backtesting from 1999 is provided by the authors. This of course means that the system must have underperformed on earlier years since the authors so conviniently miss to show this testing although it would certainly not hurt to do so if it showed a similar equity curve as the backtests they show.
The live testing up until now, from June 2009, matches what I would expect from a trend following systems with several important loses during the past month which has been quiet rangy. I would have to say that as much as I like the way the logic of this expert advisor looks, the fact that backtesting is missing could mean that the system is too well adapted to a certain fit set of market conditions, which could be the case due to it's rigid take profit and trailing stop parameters. I have emailed the authors of the Lerosa FX Pro trading system requesting they post backtesting results from 2000 to 2009 to really show their system's long term profitability. If they fail to do so, then we will know the system is just adapted to current market conditions and will start to wipe equity as the market changes a little. However, I do concede that the Lerosa FX trading system is in much better standing than 99% of the experts out there and will obviously be tested on my weekly newsletter if they agree to show extended backtesting results which we can confirm to be consistent with live testing reports.
If you would like to learn more about how to evaluate expert advisors profitability and how to trade profitably with a free long term stable trading system 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 this article !
Well, at first glance I though that the Lerosa FX Pro website was very good, aimed at people who knew the risk levels they were looking for and who are not looking to get rich overnight using automated trading systems. Definitely, the people at Lerosa have given this some thought. There is a big Risk Warning item on the menu, one of the first I might add, which is quiet odd for an expert advisor selling website.
But well, what I can I tell you about their trading system ? I have to confess that this is one of the first experts I have reviewed in a long while which I have not discared in the first 5 minutes of analysis, it actually took sometime to really get my opinions constructed about this trading system. The website owners provide one year backtesting of the expert with three different risk levels which is something I consider appropiate given the fact that people should consider how much draw down they would be able to sustain and balance it with how much profit they can get. Stoploss and take profit values are adequately separated from the entry price so one can consider backtesting of this ea as guidance for risk levels, as they probably represent the system's trading accurately.
Another thing I liked about the Lerosa FX Pro trading system is it's risk to reward ratio which, in an absolutely surprising turn of events for me, turns to be actually very small, of about 1:3, That is, the system risks 1 dollar for every 3 it makes, something which is always a positive characteristic of an expert. It's equity curve is what I would consider ideal but it's draw down levels are below it's predicted market exposure by my standards.
One thing that gets me thinking is why no backtesting from 1999 is provided by the authors. This of course means that the system must have underperformed on earlier years since the authors so conviniently miss to show this testing although it would certainly not hurt to do so if it showed a similar equity curve as the backtests they show.
The live testing up until now, from June 2009, matches what I would expect from a trend following systems with several important loses during the past month which has been quiet rangy. I would have to say that as much as I like the way the logic of this expert advisor looks, the fact that backtesting is missing could mean that the system is too well adapted to a certain fit set of market conditions, which could be the case due to it's rigid take profit and trailing stop parameters. I have emailed the authors of the Lerosa FX Pro trading system requesting they post backtesting results from 2000 to 2009 to really show their system's long term profitability. If they fail to do so, then we will know the system is just adapted to current market conditions and will start to wipe equity as the market changes a little. However, I do concede that the Lerosa FX trading system is in much better standing than 99% of the experts out there and will obviously be tested on my weekly newsletter if they agree to show extended backtesting results which we can confirm to be consistent with live testing reports.
If you would like to learn more about how to evaluate expert advisors profitability and how to trade profitably with a free long term stable trading system 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 this article !
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