Zealot Advisor
In the 77th issue of ForTrader.org we will analyze the most controversial version of trading robots for MetaTrader 4 - the Expert Advisor Martingale. For those who do not know, let me explain: Expert Advisors working on this principle trade more on the basis of money management rules, when there is either a "grid" of orders, overlapping each other, or positions of larger volume.
Zealot trading robot is positioned as a novelty in 2013 and is recommended by the developers for use as a portfolio advisor.
The Zealot trading strategy is based on is the search for market reversal points based on previous movements. To enter a position, the robot searches for oversold and overbought areas and preconditions for a price reversal. When getting a drawdown, Zealot, according to the developers, uses the principle of "soft Martingale".
The problem of the robot is a prolonged trend movement without a pullback, because Zealot sets a grid of counter-trend positions, expecting a profitable corrections. If this does not happen for a long time, you can get a very big minus.
In Zealot Advisor trading is implemented with three types of settings: conservative, moderate risk and aggressive. Since the Expert Advisor uses the Martingale principle, we do not recommend using aggressive trading due to the high risk of losing the deposit. When back-testing Zealot Expert Advisor with aggressive settings in ForTrader.org magazine's lab, after it made a tangible profit, the deposit was nevertheless drained.
Expert Zealot Recommended for trading on the currency pair AUD/NZD, on the 15-minute timeframe. In addition, to "survive" long periods of loss, the Expert Advisor requires a reserve of capital. The minimum recommended deposit is 1000$ when trading with 0.01 lot. Since the minimum lot of our sponsor is 0.1, we are going to test the Zealot on a demo account at 10,000$.
Testing Conditions for Zealot Advisor
- The company: Gamma Markets LTD
- Terminal: MetaTrader 4
- Deposit: 10 000$
- Account type: demo,ECN
- Currency pair: AUD/NZD
- Timeframe: М15
- Expert's office hours24/7
- Backtest: 2010-2012
- Start of testing: September 30, 2013
Testing Zealot Advisor
- Initial deposit: 10000$
- Net income: 36725.13$
- Maximum drawdown: 9461.24 (67.43%)
- Average profitable trade: 24.52
Beck test shows very good results. In spite of the rather impressive drawdown in 67%, the deposit was enough for us to wait for the trend reversal. Such a dip in the balance looks troublesome and not everyone can stand it, but we are much happier, that Zealot did not have any problems in the future.
- Initial deposit: 10 000$
- Net income: 6960.68$
- Maximum drawdown: 2558.91 (17.84%)
- Average profitable trade: 18.34
This year's robot is also performing quite well, so Zealot deservedly takes a place in our expert monitoring.
Many traders are always very aggressive towards Expert Advisors based on the Martingale principle. The experts of ForTrader.org are not among the opponents of such robots. Why?
It is true that such an expert will lose your deposit sooner or later. However, during this time you can withdraw a significant profit if you do not reinvest, but cash out your winnings. Until the moment when the deposit is lost, you will be able to double it more than once. And that means that you will make a profit. To some extent, of course, it depends on luck, but, being well-versed in market analysis and tracking trend movements, you can protect yourself by turning off the Expert Advisor.
That's why we're trying the first "Martin" in our monitoring.