The article was published in FXStreet Education Sector after slight modification.
A few weeks ago, a client told me that he found a perfect EA, performing consistently and extremely profitable from 2015 until now, with over 1 million dollars in the account. The EA company’s sales representative showed him the live account in action, but they did not post the account to any third party website because of account security concerns.
I told him to ask for the investor password and other details to well observe the account. It was only a few hours valid for the account details, the EA company said they would well protect their intellectual property.
The account looked very good indeed, but I still uploaded the account’s trading history to a third-party website for further observation.
Overall, it looks very perfect, from 2015 to 2024, the account made more than $1 Million in profit, and the current account capital is more than $1 Million as well. However, this account is running in Non-Regulated Broker and the curve from 2020 to 2022 is rather flat.
Chart 1 The performance of the EA from 2015
We used custom analysis from January 2020 to the present and found that the 3-year profit was only 17%.
Chart 2 The Performance of the EA from 2020
In 2022, only 3 months’ trading history was available.
Chart 3 The Performance of the EA in 2022
In 2020, only 1 month’s trading history was available.
Chart 4 The Performance of the EA in 2020
Since 2024, the account has only traded one currency pair, GBPJPY.
Chart 5 Trading symbol from 2024
The Summary of this account shows that GBPJPY was one of the most losing currency pairs.
All other pairs are highly profitable.
Chart 6 The Summary of the EA
Why would the vendor not trade those highly profitable pairs and only trade the most losing pairs? Based on the above analysis, the most likely reason is that the vendor deleted a lot of losing trades. There is no good trading method, although GBPJPY has lost more than 80,000 U.S. dollars, but compared with other currency pairs, GBPJPY is still considered a relatively good situation, so currently he has to trade GBPJPY only.
Of course, we can’t rule out that Vendor spent the 11 months of 2020 and the 9 months of 2022 to re-optimize the EA, but the likelihood of that is slim to none. All in all, this EA is not suitable for live trading applications. We’d better leave it alone.
Conclusions:
1- Always beware of accounts running on a Non-Regulated Broker.
2- It is very difficult to get a global and nuanced view of an account by accessing it via the investor password.