Jsantos - have you read the FAQ? It states how the lot size is determined and how many trades there will be. There is a maximum of 10 trades, by 10 trades the lot size is high and needs only a small move in it's direction. If it gets a large move against it after 10 trades then this could loose a your account. There is an equity protection flag. On backtesting depending on the year there are 5-10 days a year where the EA would have lost your account. Minimum equity protection we suggest is 40% as in larger trades 20-30% drawdown is normal. Currently we are experiencing a really good sideways market, hence the very low drawdown.
hi, you mean with this ea, one can lose the entire account when equity protection is not used right?
During a sideways market this EA has returned substantial gains, when this sideways market ends is anyone's guess - the fundamental reason why they are in sync is still in tact - the underlying the commodities market (gold, ore, etc) and the stability of the AUD dollar with the fall of the EURO. If America goes into hyperinflation this would cause a strong trending market and thus this EA would loose your account.
I would put the equity protection at 50% at level 5 and 40-45% at level 2.
At level 5 it has made over 25% per month, at level 2 it's about 7% gain per month.
I also say that wear possible realise your gains then use these gains as what you end up risking.