There is no shortage of publicly available expert advisors. Actually, there are so many different trading robots available that it is easy to get overwhelmed with the options.
One of the bloggers at BabyPips attempts to help narrow down the options by backtesting and publishing the results of three expert advisors they find interesting each month. This is a great resource for new traders looking for a strategy they can work with. It can also be beneficial to seasoned traders looking for new ideas or different options.
This month, the BabyPips post focused on three trend following robots. Each of the EAs is designed to identify breakouts and then establish positions in the direction of the trend. The article backtested each of the robots from November 2012 through November 2013.
As with any backtesting data, there are pros and cons to each of these results. Any of these robots could produce dramatically different results with only a slight adjustment in market, time frame, or position sizing. For that reason, both the good and bad aspects of each EA should be taken with a grain of salt.
PZ Reversal Trend Following EA
The PZ Reversal Trend Following EA is a reversal trend following system that is always either long or short the market it is trading. It bases its position on the previous 100 bars. The robot signals a long entry when the market breaks into a new 100-bar high, and it signals a low position when the market breaks into a new 100-bar low.
The BabyPips article does not specify what market or time period it backtested this robot on, but there were eight signals generated over the course of one year. The overall profit was 5.95%. The win ratio was 62.5%. The average profit was 2.69%, while the average loss was 3.56%. The maximum drawdown for the year was 8.37%.
Maximus vX Lite EA
The Maximus vX Lite EA is designed to identify price consolidations and then either buy a break above the consolidation or sell a break below the consolidation. This robot was designed specifically for the EUR/USD currency pair.
The BabyPips article specified that it used 1-hour bars on EUR/USD for its backtest. The results were a total of 13 trades with an overall profit of 0.43%. The win ratio was 76.92% with an average profit of 6.33% and an average loss of 5.86%. The maximum drawdown was 23.98%.
Charles 1.3.3 EA
The Charles 1.3.3 EA looks to identify price breakouts and take positions in the direction of the trend. Once a position is established, the robot continues to place orders progressively in order to pyramid profits. The EA also attempts to scalp pips once a trade is profitable. It is designed to be used with any currency pair.
The BabyPips article tested this robot on the EUR/USD currency pair using 15-minute bars. That produced 310 trades with an overall profit of 35.70%. The win ratio was an impressive 88.39%, but the average profit was much smaller than the average loss. The maximum drawdown was 47.75%.