INOUT ADVISORY – test in the tester is not real trading!
Greetings dear visitors. Today I would like to share my impressions from testing the INOUT expert. The essence of the Expert Advisor is that it is based on the signals of the IVAR oscillator indicator. The indicator is quite popular among traders, so the appearance of an advisor based on it was good news for its fans.
A martingale was also attached to the expert so that the profit would be much greater. Previously, I reviewed this expert in the “ Forex Advisors ” section, so you can find more detailed settings and optimization of parameters in the corresponding article.
Previously, I tested the expert in the strategy tester, but as practice with testing the FOREX WARRIOR expert , reality can be very different from preliminary testing. You can see the result of the preliminary test in the strategy tester in the picture below:
The result in the tester was really impressive, so my team and I, without hesitation, decided to test the Expert Advisor in real trading conditions. For this purpose, a demo account was opened, which simulates the balance of a novice trader in the amount of 100 dollars on a cent account or 10,000 on a classic trading account.
In order to provide an objective test without any intervention, the expert was installed on a VPS server , which allowed him to trade around the clock.
The test itself began on the currency pair on a five-minute chart from 07/15/2015 and ended on 07/30/2015. You may say that this is too little, but I will tell you that the test is not carried out in order to accumulate maximum profit, but simply to see its trend and trading style. You can see the test result in the picture below:
The first thing that immediately catches your eye is the large drawdowns on the chart. And in fact, in 15 days of trading, the expert earned only five percent of the deposit, and the maximum drawdown reached almost 13 percent of the deposit.
Looking at the number of winning positions, which amount to 89%, you simply wonder why there is such a low drawdown with such an effective strategy. It turned out that it didn’t take long to find the answer. The point is that the expert sets a profit of just a couple of points and takes a profit on the minimum movement. However, when the price does not go in our direction, when the martingale is triggered and the profit is withdrawn to a couple of points, wildly unjustified drawdowns occur.
Because of this approach, we can observe such a low indicator of the expert’s profitability as a profit factor, which in turn amounted to 1.10. The number of transactions, which amounted to as many as 307, also came under suspicion. There is a feeling that the expert was created not for making profit from trading, but for making money on the return of the spread .
At the end of the article, I would like to add on my own behalf that the Expert Advisor is clearly not worth using on large accounts. Its profit to drawdown ratio, as well as the number of transactions and their impact on your psychological state, simply leaves much to be desired. The level of this expert is a couple of hundred dollars on a cent account, otherwise the possible profit simply does not justify the possible losses. Thanks for your attention, good luck!