Ok. So given what we discovered in the Alpari UK backtests and what we have seen for three weeks on the forward test, what is the verdict on Euro-Blaster?
Well, first off, I do think it is a solid EA that produces good results most of the time. I also think it is well worth the small $89 price tag and that you should definitely grab a copy. You won’t find decent expert advisors for less than that.
The downside to the robot, as mentioned previously, is that though it is rare for the robot to hit its stoploss, it will most certainly happen eventually. That’s just the nature of the market. The EUR/USD pair has become quite volatile in the past year or so, and its daily range is now much larger than it used to be. So a 500-pip move in one direction is not out of the question by any means for this pair.
That said, what is the best way to trade this robot? Well, it depends on your objective. If, for instance, you just want another EA to add to your arsenal of robots that trade the market for you and are happy with pretty much any kind of positive return, I am convinced that Euro-Blaster can be run quite successfully on a conservative setting, yielding you somewhere between 5% and 30% on your balance per year on average. And if you should happen to hit a year like 2008 where the 500-pip stoploss wasn’t hit, you would be sitting pretty even at the low-risk setting. This is how I would recommend most people use the robot.
If, however, you have an appetite for more risk and the gains that hopefully come with it, I think you have to devise a way to secure some of your profits along the way. For instance, if you risk $1,000 initially, perhaps you pull out $250 every time the robot gains an additional $1,000. Obviously the numbers could be very different, but the idea is to get to the point where you are trading for “free”. So that if the account did blow up, you would already have pulled enough profit out to cover your initial investment. Then you can just let the robot run and see how far it can take you before hitting the dreaded stoploss. Again, you will never know when that crash will occur, so it is important to draw some profits out along the way. Just do it — you’ll thank me later.
If you’re even more of a dice roller and have some extra cash to burn, just put $1,000 on Euro-Blaster (aggressive setting) on January 1 of each year and see what happens. If you would have done this every year since 2004, every year would have crashed your account except one — 2008. And let me tell you — it only takes one magical year like that. Looking at the backtests for last year, you would have been a multi-millionaire just putting in $1,000 on January 1. Of course you never know when the next such year will come along, so you have to be disciplined and put the $1,000 in at the beginning of each year. It could happen in 2010. It might not happen until 2020. There is no way of knowing, but if you’re there every year, you will be along for the big ride when it happens.
I have another idea for trading Euro-Blaster with the aggressive preset that I think would be profitable. I will share that one soon.
4 Comments until now.
well ,
that would be great if you find any way in which euro-blaster doesnt hit the 500 pip stop loss !
the profit would be 100,000 %
Well, there’s no way to avoid ever hitting the stoploss, but you can do some things to protect your profits as they accrue, and that is the direction I am going with my other idea… will post soon.
Brokers outside the US are still allowing hedging. This EA allows for hedging and I have contacted Patrick to see how the hedging is managed by Euro Blaster.
Hello, Mark. You are correct. Being in the U.S. myself, I have never even tried Euro-Blaster with hedging turned on. Please let me know what Patrick says. Depending on how the EA is coded, having the hedging turned on could make a huge difference.
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