Einstein Advisor
Testing trading robots
In the 79th issue of ForTrader.org we will take a look at a trading Expert Advisor with the pretentious name Einstein, which hints to us that there is a clever mathematical algorithm inside that claims to be genius. It's all a joke, of course. But, as the saying goes, "In every joke..."
Algorithm of Einstein Expert Advisor
So, let's start with the fact that the EA is western, commercial and new. At the moment its price for the first 50 buyers is 149$ instead of 199$. As one smart person said, "It's high time Americans issued a 9$ bill". Nevertheless, for this rather small amount of money a trader will get a fully automatic robot, easy to use, actually using a mathematical algorithm on EURUSD and M1, trading even with a small deposit, on candle close with the possibility of customization Money Management. The authors claim great profitability, work on 4-5 trading accounts, support and free updates.
That's a very impressive way of putting it. Now we just have to test it. Which is what we're going to do.
Testing conditions of Einstein Expert Advisor
- The company: Alpari
- Terminal: MetaTrader 4
- Deposit: 100$
- Account type: real, ECN
- Currency pair: EURUSD
- Timeframe: М1
- Expert's office hours24/7
- Backtest: 2013
- Start of testing: November 26, 2013
We also plan to test this robot on a real trading account with a small deposit. The authors noted separately that the best trading with Einstein occurs on the ECN accounts at low spreads. Let's take a hint. As for trust and tests, let's see what Einstein can do.
Testing of Einstein Expert Advisor
Let's start with the traditional author's set and settings. Let's take 1000$, EURUSD, M1, and lot 0.1. Testing time - 2013. We will get the following picture in the tester:
As you can see, a pretty solid balance chart, with some rough edges in the last few months, but still on the plus side. On Characteristics:
- Initial deposit: 1000$
- Net income: 2859.07$
- Maximum drawdown: 378.44 (10.95%)
- Average profitable trade: 28.97
- Average loss trade: -41.03
- Spread: 6
The quality of modeling is somewhat embarrassing, which is only 25%. However, the very fast work of the Einstein Expert Advisor in the tester allowed us to conduct a lot of tests, during which the drawdown did not rise above 12%. By the way, Einstein works by bar closing, which means that it is possible to reduce the time for the test by conducting it at the opening prices without drastically changing the result.
Quite successful results allow us to move on to verifying the claim that the robot trades on small deposits. Let's choose 100$ and lot 0.01 and get the following picture:
- Figure 4. Testing Einstein on deposit in 100$. . Statistics detail.
- Initial deposit: 100$
- Net income: 354.92$
- Maximum drawdown: 44.16 (11.13%)
- Average profitable trade: 3.56
- Average loss trade: -4.99
- Spread: 6
The confident result of the Einstein Expert Advisor gives us the opportunity to test it on a real account with confidence. Of course, someone may say that 350% per year is not enough, that on a contests make 1000% in a week. We would like to argue: not everyone will choose high returns without stability, not the other way around. In any case, the price of the advisor clearly corresponds to the quality.