Trio Dancer Advisor - Good Start, Sad Ending!
Greetings, dear visitors. I've mentioned several times before that we'll be testing our advisors on a demo account. To ensure a reliable test, we opened a demo account with a deposit of $10,000. This amount is justified by the fact that working with an expert advisor requires a minimum deposit of $100 on a cent account.
So that you could not reproach us for the test, the server was removed for testing, therefore the expert is on the market 24/7.
I've previously described the Trio Dancer , so I won't dwell on them here. The expert advisor was tested on May 27, 2015, on the EUR/USD currency pair on a five-minute chart. The advisor uses a martingale strategy, so the initial performance chart may be impressive. Just four days later, on June 1, 2015, the test results were as follows:
I'd like to point out that the lot size the expert advisor traded was 0.1. Since the expert advisor consists of three strategies, profits were immediate, even though the maximum drawdown barely reached one percent. This profitability was maintained because the expert advisor's orders were not placed in one direction, and while averaging was working on one order, the other two strategies were profitable. Thus, the expert advisor hedged its positions from the start.
But this return seemed too high to me, which was highly suspicious.
On June 1, 2015, the EUR/USD began to move strongly, and all three of the advisor's strategies went against the market. Literally on June 2, 2015, the price moved 250 pips, and the deposit was simply wiped out. You can see the result in the image below:
I don't think the results of the advisor's testing are worth discussing. In just a week, this expert advisor managed to completely wipe out the deposit. Of course, there was a pullback the very next day, and if the deposit had been larger, the expert advisor would have easily survived this move.
Even though the expert advisor blew my account, I was able to draw a couple of conclusions. First, the martingale is dangerous. Second, the expert advisor isn't all that bad, considering the profit it generated in just a couple of days.
Now, some recommendations for those who decide to conduct an additional test of the EA. Calculate the EA's deposit using a simple formula. To trade a 0.1 lot for one strategy, you need $100 on a cent account . In our case, $300 is needed for stable operation, since we have three strategies running simultaneously. I believe the reason for the account drain was an insufficient deposit. Thank you for your attention, and good luck!
