Partner Center Find a Broker

Greetings, earthlings!

I’m sure many of you have been wondering where on EARTH I have been for the past few months. Well, y’all are asking the wrong question because I seem to have wandered off into SPACE! I got a little caught up acting in this film called Gravity, perhaps you’ve heard of it?

Anyway, as I was drifting around the galaxies trying to avoid collisions with debris from the Russian missile launch, I began pondering about the existence of other robots in your world. Luckily, I was able to hitch a ride with Dr. Ryan Stone (Sandra Bullock) in her landing capsule back to earth and rediscover the existence of forex robots.

In particular, some have caught my attention as they posted promising results for the backtesting period I used. In this case, I ran the tests from October 2010 to October 2013. Here are the top three systems that have caught my interest this month:

1. Bob’s MTF LWMA System

This expert advisor was suggested to me by a kind forum user bobbillbrowne in the Expert Advisors and Automated Trading section. In a nutshell, it makes use of the linear weighted moving averages (LWMA) on the short-term time frames such as 1-min, 5-min, and 15-min charts. Here are the results:

Number of trades 23
Profit/Loss in % 21.39%
Win ratio 56.52%
Largest profit 4.58%
Average profit 0.43%
Average loss 3.46%
Maximum drawdown 13.45%

2. MACD Cross AUD-D1

My search for profitable EAs also led me to the MLQ4 Codebase via the MT4 trading platform. I stumbled upon this MACD Cross system by author ilkyulee, who specified that this robot must be used on AUD/USD’s daily chart. After crunching the numbers, here are the results:

Number of trades 46
Profit/Loss in % 0.37%
Win ratio 26.09%
Largest profit 1.20%
Average profit 1.16%
Average loss 0.40%
Maximum drawdown 5.69%

3. MACD Sample EA

I also took a look at the sample systems included in MT4 and found an updated version of the MACD Sample EA. The currency pair and time frame weren’t specified so I just decided to run the tests on my favorite pair and time frame, which is EUR/USD 1-hour. Here’s what I got:

Number of trades 190
Profit/Loss in % 1.30%
Win ratio 73.68%
Largest profit 0.75%
Average profit 0.59%
Average loss 0.27%
Maximum drawdown 0.39%

So, what do you think? A quick disclaimer before you start running these EAs on your platforms though… Don’t trust robots right away! Didn’t you watch Transformers?!

Before you trust a robot with your life (or in this case, your hard-earned cash), make sure that it’s a good autobot and not a bad decepticon. In other words, you gotta do your homework and additional research to figure out if the EA is consistently profitable or not.

Aside from that, don’t discard a system immediately if its P/L isn’t very high. Take a look at the rest of its stats, such as the win ratio or average profit, and figure out if you simply need to adjust the risk per trade or stop loss size. Maybe it just needs a few tweaks here and there, so give it a chance by using the optimization tools on MT4. That’s what I plan to do!

Lastly, always remember that past performance is not indicative of future results. The forex market is dynamic in nature, which means that a system that has fared well in a particular type of environment might not be able to churn out the same kind of results in a different one!

That’s all I got for now. If you think you’ve got a forex robot that can do better than the ones I’ve featured, don’t hesitate to holler at me in the EA section of the forums! I’ve posted these three featured systems up there for discussion, which means I’ll be hanging out in that joint more often so that I don’t drift back to outer space again.

*beep beep boop beep*