CANDLEBOT – quantity does not mean quality

Greetings, dear visitors to the section dedicated to testing experts. Today is the significant day when I can share with you my opinion and the result of testing the CANDLEBOT expert.

Advisor CANDLEBOT is one of the most unique robots that I have encountered during various tests. Its uniqueness lies in the fact that it works with 29 different candlestick combinations and in many ways has high potential, unlike other robots.

The fact is that the advisor does not use any dangerous money management methods, but only a clearly defined profit and stop order. Previously, a detailed review of the Expert Advisor was made and a number of settings and patterns that the Expert Advisor works on were listed. You can actually read the article about this expert by clicking on the link .

Previously, we did a detailed test of the Expert Advisor in the Strategy Tester using some of the patterns. You can see the result of the preliminary test for individual patterns in the picture below:

The basis for testing the expert on a demo account was the actual uniqueness of the advisor, as well as its good preliminary tests in the strategy tester. To be honest with you, this is the first time I have come across an advisor that has such a wide range of patterns in its trading strategy, so unlike various tests on other robots, I was pursued by my own interest.  

I was wondering how the advisor would perform if we took all 29 candlestick combinations into account, without giving priority to stronger signals and vice versa. In order to conduct testing, we opened a demo account with 10,000 dollars in the account, which is equivalent to 100 in cents.

Next, the expert was installed on a VPS server so that the advisor could monitor the market around the clock and not miss a single candlestick combination. We decided to conduct the testing itself on the euro/dollar currency chart on an hourly chart. All settings were set to default, namely all patterns were enabled.

The test itself began on August 30, 2015 and lasted until September 14, 2015. The expert was in the market for two weeks, so based on these results, preliminary conclusions can be drawn. You can see the result of testing CANDLEBOT in the picture below:

 As you can see, despite my praise and expectations, the adviser showed a negative result in two weeks of trading, but the minus is not critical and is very ridiculous considering how much it worked and with what deposits. Over the full two trading weeks, the expert opened 14 positions and caused a loss of $43.

The drawdown did not even reach 3 percent, as taught in textbooks, but amounted to only 2.37 percent. If we talk about profitability indicators, the profit factor is at an extremely low level and is only 0.89. The expert closed only 35 percent of orders with a profit and 64 percent with a loss. However, do not forget that in the settings the profit was 70 points and the stop order was only 40, so the ratio is in principle acceptable.

Now let's analyze why CANDLEBOT showed such poor results. If you were watching his trading, you would have noticed that it is simply unfair for all patterns to set the same stop order and profit. If we compare the Doji effect, the pattern gives a profit of 40 points at best, but if the Hammer candlestick combination is worked out, then the price freely moves 70-100 points per day.

Therefore, I observed such a picture when the price moved about 30-40 points in our direction on weak patterns and went back and broke the stop order. Therefore, when working with this advisor, you simply cannot leave all the patterns, but you need to select them by groups and set your own profit and stop order for them.

Also, as an alternative, you can place an expert on the same currency pair, but including and adjusting profit and stop orders according to one pattern.

In conclusion, I would like to say that, despite the negative test result, the expert has enormous potential if stop orders and profits are correctly configured. Another significant advantage of CANDLEBOT is that its trading does not require a large deposit, so with 10 dollars in a cent account you can choose the optimal patterns and settings for this expert.