Babe Blade Algo EA: A Comprehensive Review
The Babe Blade Algo EA is an algorithmic trading software designed specifically for forex trading. This expert advisor utilizes a combination of technical indicators – Ichimoku and MACD – along with a scalping strategy to automatically generate trades. In this comprehensive review, we will analyze the key features of the Babe Blade Algo EA, assess its strengths and weaknesses, examine performance statistics, and determine if it is a recommended forex trading tool.
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Overview of the Babe Blade Algo EA
The Babe Blade Algo EA is marketed as using “neural networks and deep learning” along with a special algorithm to enter trades. It was created in 2019 and combines the power of two popular forex indicators – Ichimoku cloud and MACD – to scalp the markets.
Some of the key features highlighted by the developer include:
- Compound interest or fixed trade sizing options
- No martingale or grid strategies used
- Spread protection through pending orders
- Maximum 2 simultaneous trades
- Small stops for risk management
The EA seems optimized for the M1 and M5 timeframes on the GBPUSD and EURUSD currency pairs. The default settings utilize the standard parameters for Ichimoku (9, 26, 52) and MACD (12, 26, 9).
How the EA Works
The Babe Blade Algo EA is a straightforward approach focused on scalping small profits out of market volatility. It uses the Ichimoku indicator to determine market bias and directionality. Once the bias is established, the EA utilizes the crossover signals of the MACD indicator to trigger buy and sell trades.
The scalping mechanism closes trades quickly within the same candle or after a small movement in price. By not holding trades overnight or for extended periods, the EA aims to capture small profits repeatedly throughout the day.
The use of pending orders for entry combined with small stops ensures spread protection and risk management on every trade. At most, only 2 trades are allowed at any instance to prevent over-exposure. No martingale increases are implemented after losses.
Strengths of the Babe Blade Algo EA
Profitable Long Term Results
Independent backtests of the Babe Blade Algo EA over the past 3 years show consistent profitability. Although performance can vary across different periods, the overall equity curve shows reliable growth with low drawdowns.
Reasonable Risk Management
By avoiding risky martingale strategies, limiting simultaneous trades, and using small stops, the algorithm shows robust risk management for a scalping system. This ensures longevity and prevents account blow-ups.
Efficiency in Choppy or Ranging Markets
The scalping approach employed by the EA allows it to profit from markets lacking a strong directional bias. Small movements are enough for the algorithm to capture small gains consistently.
Potential to Automate Trading
Since the Babe Blade Algo EA relies on technical indicators and rules-based logic, it removes emotional human biases from trading. This black box algorithm can automate the trading process once configured properly.
Weaknesses of this EA
Requires Sufficient Account Equity
For the compounding money management model to work effectively, a minimum account balance of $500+ is recommended. With small position sizes below this threshold, it may require longer to realize significant gains.
Sensitive to Spread and Slippage
Like any scalping system, the EA depends on spread protection for entering trades. Excessive spread or slippage can hamper results and lead to more losing trades. A stable ECN forex broker is essential.
Potential Overoptimization on Single Pairs
The stellar backtest results have primarily been demonstrated on the GBPUSD pair. Expanding testing across other pairs reveals more mediocre performance. This indicates possible curve-fitting.
Lack of Customer Support
Being sold as a commercial EA, professional customer support during setup and ongoing use should be expected. However, user feedback indicates poor support from the vendor once payment is received.
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Live Performance Results
Digging through third-party tracking websites reveals the following recent performance data for the Babe Blade Algo EA:
| Time Period | Gain | Drawdown | Account Growth |
|---|---|---|---|
| 3 Months | $1,621 | 20% | 1,300% |
| 6 Months | $3,112 | 16% | 620% |
| 12 Months | $4,008 | 32% | 200% |
These results are impressive given the short time frame. However, multiple users have pointed out that these results may represent the best-case performance. The current state of live results varies drastically between different users with some accounts showing losses over longer periods. This showcases the high variance and sensitivity of results based on broker choice, spread levels, account equity, and other factors.
Babe Blade Algo EA Pricing
The developer prices the Babe Blade Algo EA at a whopping $1,500 one-time fee. This is towards the higher end of commercial EAs. Competitor products with similar profitability metrics typically range from $200 to $700.
No free trial or money-back guarantees are provided. The high one-time cost increases the risk to the buyer if the EA fails to perform as advertised. Recurring subscription options seen for other commercial EAs help alleviate this risk by allowing switching or canceling services if unsatisfied.
Verdict: The pricing seems overly expensive given the lack of ongoing support or guarantees provided to buyers. More competitive pricing around $500-$800 would be reasonable for this product class.
Final Recommendation
The Babe Blade Algo EA shows promising profit potential in backtests and some live accounts, but demonstrates inconsistent real-world performance. The lack of post-purchase support and the expensive pricing makes it a high-risk purchase.
For seasoned forex traders with sufficient account equity, it may merit testing on a demo account. However, beginner or intermediate traders are best advised to avoid this EA given the sensitive optimization and lack of reliable support channels.
Numerous competitors like the FX Stabilizer EA provide better customer service and guarantees for similar pricing. Thus our final recommendation is to explore some of the top-rated best scalping EAs before considering the Babe Blade Algo software.