This is why I am skeptical. This happens all the time. And people wounder why I don't just buy the EA outright. I want to TEST IT before I buy it because they are NOT going to give you a refund for the EA. I don't want to spend $500 and then lose all my trading money to an EA that I did not test beforehand.
Got multiple questions what happened to my account. Yes, the account is gone, this is how it happened.
I was trading trend on EURUSD long, AUDUSD short, NZDUSD short, USDJPY short. Everything went well until Thursday, when I needed to go to important meeting, bad coincidence wanted at the same time as Draghi triggered his QE expansion bomb on the press conference. When I returned 1 hour later back (conference just ended), 2/3 of the account was gone as Draghi reversed all the trends and everything went against me at the same time. Basically market just forgot about Chinese crisis, market started sell heavily EUR, buying commodity currencies AUD, NZD and selling JPY. As the market's move was fairly overdone when I came back, I decided to risk the rest of the account and hoped for a correction. However at all the trends reversed, this was one of my biggest trading errors I have made.
Although the account is wiped out, I’m still profitable, as I have made several withdrawals along the way. So I will just start again, with this great EA, but this time with different broker. ActivTrades broker is a pain in the ass. They have delayed all the withdrawals requests (probably their finance booking department examined all my trades thoroughly and was breaking their heads how I was able to achieve such performance), but what's worse they connections on trading servers is very unreliable that has resulted to several blackouts during most volatile US trading sessions. They don’t have backups, so you have no other options to stare at the screen and hope for quick fix.
Also you have asked how it’s possible EA vendor wasn’t wiped out when I have traded the same EA. When trading with this EA you can choose any trending pairs you like, so it’s very probable 2 traders will choose different trends. Also I put much more risk to all of the trades after I have earned my deposit back within few weeks, so I have been basically risking and reinvesting profits from the market. This EA has also advanced parameters, which I wasn’t using, what to do, when the trend changes.
To sum it up, the account was wiped out on bad luck/coincidence and trading errors resulting from psychological stress. I have learnt a big trading lesson again.
So that makes me wonder if the news hits is a weakness of this EA. I know that news can definitely affect just about any strategy, but @JojoW is it only because you had a larger risk that made the capital drop so fast? I know you explained everything, but I'm just trying to make sure I understand since I am still somewhat new to Forex. Thanks/
Please do not open huge lot using TrendScalping EA. use small lot and low risk parameter. Using low risk parameter, i could survive any market condition. First major market movement happen after the TrendScalping EA started was on 24 aug 2015.
Last week 22 oct 2015 and 23 oct 2015 were also major market movement.
Which i believe at this 2 times, many account will be wiped out. But with low parameter. I can survive it.
@SubTh3ory There is only one weakness for this EA and it's not definetely the news. Just the opposite, the volatile the market is the more money you make. That weakness is, that only if you use the EA against trend, it will cost you. But like explained in the trading guide i received, there are signals when this is about to happen and you get warnings. However on Draghi's day all the trends completely reversed and under such heavy lotsize it didn't took much time to get significantly hurt on the equity. The smaller you are risking, the more time you have time to react on such events. But as i said, if i was in front of the trading screen on Draghi's day, the account would be still alive.
Please understand that my account was not wiped is because i use small lot size and low risk parameter. In-fact i made much more profit on these day where huge market movement took place. You can see that there were increase in profit in term of pips.
This also proof that TrendScalping EA can withstand huge market movement and still made profit. You can also see that my draw-down is still at 55% and had not increase since.
With 55% draw-down and over 700% gain. I don't understand why people keep thinking it will be wiped out soon.
Yes. You can make this EA run on very low risk so that it can generate an ROI% of 15-20% a year, with less than 10% risk. This will be using the lowest risk parameter. You are in full control of the EA
I am not using the lowest risk parameter. i am using decent risk with decent profit.
@trustfundfx The problem is, that once you see how easily this EA makes profits, you are just tempted to increase the risk to earn more. I know what i'm talking about. Also started conservatively, but later after profits rolling in my account I couldn't hold myself back and increased the risk more and more. This is something i need to work on in order to get myself to iron discipline one day.
So basically, this EA system survived an extremely active market condition where most other EA's would crash, yeah? If that's the case, that's a pretty good indication that this EA might be good for a while.
I was looking at the statistics of the Trendscalping EA and it showed that there were a few lost trades (mostly wins, of course). Then, I came back the next day and looked at the statistics again and it showed 100% wins. How did that change? What happened to the lost trades?
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
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Past performance is not indicative of future results.