Forex Scalping EA is a fully automated FOREX robot that capitalizes on minor market movements to make profits. The scalping-based EA uses trades of shorter duration to provide successful results. This FX EA is available in four different price packages namely the Basic, Standard, Gold, and Premium packages costing $100, $150, $200, and $250 respectively. The EA works on the MT4 platform and includes unlimited demo licenses, lifetime support, and updates.
Is Forex Scalping EA good?
As a scalping robot, this EA claims to be the best in the market. Our initial verdict on the trustworthiness of this FX robot is that it is not worth its price. While the vendor provides verified trading results and backtests, there is no info related to the vendor, the support offered, features, and an explanation of the trading approach used. The lack of transparency raises a red flag and makes us suspect it is not a good EA.
Features of Forex Scalping EA
The official site does not reveal much info on the features of this MT4 tool. From the FAQ section, we found a few details about this FX robot. No minimum balance or specific leverage isrequired for using this automated system.
Important requirements include the use of the MT4 platform and a broker with a lower spread and a faster speed of execution. Although the EA works on all currency pairs, it works best on the EURUSD, EURCHF, EURGBP, and GBPUSD pairs as per the vendor info. A 5-minute timeframe is used for operating the software.
To use this FX EA, you need to purchase one of the packages and download the software and set it up in your MT4 platform. Installation instructions are provided with the package along with 24/7 support. The vendor recommends using the demo account first to familiarize with the operation of the system.
|$100 – $250
What strategy does Forex Scalping EA use?
According to the vendor, this FX EA uses reversal trades for its scalping approach. To make the scalping more profitable, the vendor recommends using a broker with faster speed of execution and tight spreads. Although the software is fully automated, the vendor claims that you can customize the parameters and have control of the trading decisions. Other than the mention of reversal trades, there is no further elaboration on the strategy which is very disappointing.
Backtesting VS live trading results
A few backtesting reports are provided by the vendor. Here is one of the strategy tester reports for this MT4 tool.
Modeling quality of 90% is used for this backtest done on the AUDNZD pair on the M5 timeframe from 2000 up to 2020. For an initial deposit of $1000, the total net profit gained is 247306377.50.
The maximum drawdown is 1.10% and the profit factor is 14.76. A total of 80.285 trades were profitable. From the results, we can see the profits are high and the drawdown is low. Let us look at the real account trading results that the vendor provides.
From the above stats, we can see the live real JPY account using Milton Markets broker and the leverage of 1:500 on the MT4 platform. The results reveal a total profit of 91.95% and an absolute profit of 63.47%. The discrepancy in the two values indicates an ineffective trading approach that has resulted in some losses and deposits of funds.
A drawdown of 46.97% is present for the account which we find is too high. For the account that started in March 2021 up to now, the number of trades completed is 336 with a profitability of 80% and a profit factor value of 1.43. Comparing the backtest results with the real account trading results, we find a huge difference in the profit factor and the drawdown indicating that the performance is not as high as predicted in the backtests. Furthermore, the high drawdown indicates a risky trading approach.
The core team
The vendor does not provide info on the company or the developer team behind this EA. Other than an online contact form, we could not find location or contact details. The lack of transparency raises a red flag.
We found 2 reviews on the Forexpeacearmy site for this FX robot. From the reviews, it is clear that the results of live trading are not good and the EA requires close and constant attention to prevent losses. The lack of support is also mentioned in the reviews.