One of the most consistent EAs is available again
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Forex Megabot is back!
The Forex Megabot is an excellent EA (Expert Advisor = Trading Bot) for the trading station Metatrader4. It trades the pair USDCAD in the timeframe M15. Since it trades 22 GMT and 23 GMT it can be called an (Pre-)Asian-Session-Scalper.
The EA has a low Stop-Loss/Take-Profit ratio (depending on the settings). With a Stop-Loss of 50 and a Take-Profit of 8 this ratio is around 6.
Opposite to many EAs on the market the Megabot has a long history of profitable live forward tests. Here the old live forward test of the previous developer:
[](http://www.myfxbook.com/members/fxcombo/forex-combo-system/42975)
Here we have birt’s live forward test:
[](http://www.myfxbook.com/members/fxcombo/forex-combo-system/51283)
And here we have our current live forward tests:
On a Pepperstone Razor account, HighFrequency=true
[](http://www.mt4i.com/users/forex-megabot/stats)
On a Pepperstone Razor account, HighFrequency=false
[](http://www.myfxbook.com/members/Megabot/megabot-pepperstone-real/325472)
Here are some tick-data backtests for the EA. Backtests don’t say a lot about the chance of making profit with an EA, especially if no tick-data is used. But backtests are good to show the influence of the parameters. Here I show the influence of the High-Frequency option introduced with version 1.1 of the Megabot EA.
Here the tick-data backtest without the High-Frequency option (High-Frequency = false):
[](http://www.myfxbook.com/strategies/megabot-11/21603)
And here the tick-data backtest without the High-Frequency option (High-Frequency = true):
[](http://www.myfxbook.com/strategies/forex-megabot-11-hf/19978)
To see the details of the detailed backtest report, click on the image. As you can see, with the High-Frequency option the EA trades more often and the profit is somewhat larger, but the drawdown is also larger. Decide for yourself, if you want to use this feature,
The advantages of the Megabot:
Small SL/TP ratio
With default settings, we have a Sl (= Stop Loss) of 50 pips and a TP (=Take Profit) of 8 pips. So after you ran in a stop loss, you only need ca. 6 wins until you are back on the level before the stop loss. Please not that with activated UseTimeExits and EarlyExit option the EA might close the order before the TP is reached (or the SL is reached).
Many scalpers have much less good ratios
Small DD/Profit ratio
DD = Drawdown, maximal cumulated loss (in base currency, percentage or pips) within a period
The drawdown of a system is the most important caracteristic of a system. It determines the amount of money you need in your account to trade a system. You choose the amount of money (and certainly also the lot size) in a way, that the account survives a drawdown and you still have some margin left to continue trading. Normally people also plan a stop loss when starting a system (or at least when a DD begins) : They want to stop a system when its losses exceed a certain amount. So the system should not have a larger drawdown than than the planned stop loss.
In the example above (a backtest of Megabot ober 2 years and 10 month with HighFrequency=true) the profit is 674$ and the drawdown is 128$ (lot size 0.1). Let’s say you have a leverage of 1:100 with your broker (for trading one lot of 100’000$ you need a margin of 1000$). So to gain 674$ you need 228$, 128$ for surviving the DD and 100$ margin left. Without the HighFrequency option the DD is even smaller.
Beware: We assume here, that a future DD is not larger than any DD in the past. Nobody can garantee you this, this is a fact for all trading systems.
According above example we need 228$ for trading 0.1 lot, realistically you should take a little bit more than the 228$, let’s say 300$. This correspondends more or less Risk Level 3 in the Megabot parameters.
Stable trading behaviour
Many EAs are optimized for the current markt conditions. They bring profits during a period of maybe one year and then they begin to struggle. The Megabot’s trading behaviour stays stable over the years
What’s the drawback of this EA?
It trades not very often, ca. once in four days (and lesser in recent months). So for the super unpatient obessive gambler which can be found often in Forex it is rather boring to watch this EA. But the trading frequency has no influence on the profitability of an EA. If you want to increase the amount of gains just increase the lot size.
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