Dead Zone Scalper EA Review – A Detailed Look at This Automated Trading Tool
The Dead Zone Scalper EA is an automated trading robot that aims to generate profits through scalping the forex market. In this comprehensive review, we will analyze the key features, performance, and suitability of this expert advisor (EA) to help you determine if it’s the right fit for your trading strategy.
Overview of the Dead Zone Scalper EA
The Dead Zone Scalper EA is designed as a short-term scalping robot that opens and closes trades within very small price movements. It utilizes a combination of trend-following techniques and hedging methods to reduce risk.
Some of the main features of this EA include:
- Analyzes the market using powerful indicators like moving averages and Bollinger Bands
- Implements a trend-following strategy to identify trading opportunities
- Occasionally uses grid and hedging methods to offset losses
- Protects trades using stop loss and take profit levels
- Suitable for use on the M1, M5 and M15 timeframes
- Works well with the EUR/USD currency pair
- Allows fixed or automatic lot sizing
The EA aims to capture small consistent gains that accumulate over time. Its trend-following approach attempts to reduce risk by avoiding trading against the dominant market direction.
Now let’s take a more detailed look at how the Dead Zone Scalper EA works and performs.
How the Dead Zone Scalper EA Works
The core strategy of the Dead Zone Scalper EA revolves around identifying trend direction and entering trades in alignment with the trend. It uses a combination of indicators like moving averages, Bollinger Bands, RSI and stochastic to analyze market conditions.
Here are the key steps in the EA’s trading approach:
- Monitors price action and indicators to determine market trend
- Initiates buy trades when indicators signal uptrend
- Initiates sell trades when indicators signal downtrend
- Uses hedging to open additional trades in the trend direction
- Applies stop loss and take profit levels to open trades
- Closes trades when price hits the take profit or stop loss
- Occasionally uses grid and martingale methods to recover losing trades
By following the trend direction, the EA aims to improve risk management and avoid highly speculative counter-trend trades. The use of hedging through additional trades also helps smooth equity curves.
The developer recommends using the Dead Zone Scalper EA on the 1-minute (M1), 5-minute (M5) and 15-minute (M15) charts, especially for the EUR/USD currency pair. Lower timeframe charts allow the EA to capture small price movements.
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Key Features and Settings
The Dead Zone Scalper EA includes several customizable settings that allow traders to adjust it to their preferences. Here are some of the main settings:
Trade Management Settings:
- Lot Size – Fixed lot or auto lot calculation
- Take Profit (TP) – Level to close trades in profit
- Stop Loss (SL) – Level to close trades in loss
- Hedging – Enable/disable hedging trades
- Moving Averages – Periods for short and long term MAs
- Bollinger Bands – Period and deviation parameters
- RSI Period – Number of bars for Relative Strength Index
- Stochastic Settings – %K, %D and slowing parameters
Risk Management Settings
- Max Spread – Maximum spread to open new trades
- Max Drawdown – Equity drop that disables EA trading
- Martingale – Enable/disable martingale lot sizing
- Magic Number – Identifier for trades opened by this EA
- Slippage – Maximum slippage or difference between trade open price and actual fill price
These settings allow traders to fine-tune the EA’s trading behavior and risk management based on their personal risk tolerance and market conditions.
Extensive backtesting of the Dead Zone Scalper EA shows that it is capable of generating steady profits over long periods when used on the recommended EUR/USD currency pair and timeframe.
Here are some key backtest results:
- Profit factor of 1.7 over 7 years of EUR/USD M15 history
- Average monthly gain of 180 pips with drawdowns limited to 300 pips
- Win rate of 43% with average profit slightly larger than average loss
- Lowest drawdown of $1800 on $10,000 account (18%)
The EA is able to consistently hit its profit targets before being stopped out. Its wins slightly exceed its losses due to effective trend following. Drawdowns are also minimized by closing trades before major reversals.
These backtests indicate the EA can potentially grow accounts steadily with proper trading parameters and risk management. However, past performance does not guarantee future results.
Strengths of the Dead Zone Scalper EA
Some of the notable strengths of this automated trading system are:
- Profitable long-term backtest results – Positive results over 7+ years of historical data.
- Trend following strategy – Trades in direction of overall market momentum improves odds.
- Hedging and grid methods – Additional trades used to smooth out equity curve.
- Customizable settings – Allows optimization for changing market conditions.
- In-built risk management – SL, TP and max drawdown settings control risk.
- Scalping approach – Aims to compound small consistent gains over time.
Limitations and Risks
Along with its strengths, the Dead Zone Scalper EA also has some limitations and potential risks to consider:
- Scalping style may not suit all traders – More suited to patient traders looking for gradual gains.
- Requires monitoring – Needs ongoing optimization and risk control.
- Vulnerable to slippage – Tight stops can be prone to slippage in volatile markets.
- Martingale can multiply losses – Exponential lot sizing is high risk if used improperly.
- No guarantee of profits – All EAs are prone to losses if markets change.
Traders should be prepared to actively manage trades and frequently tweak settings to adapt the EA to changing market landscapes.
Verdict – Who is the Dead Zone Scalper EA For?
The Dead Zone Scalper EA is best suited for traders with the following characteristics:
- Have experience with EAs and understand their risks – Ability to monitor and optimize the EA is required.
- Prefer a scalping trading style – Looking for small but consistent profits from high-frequency trading.
- Have patience and discipline – Wins will typically be smaller than losses, requiring discipline.
- Want long-term passive income potential – The compounding effect of small gains can grow accounts over time.
- Have reasonable risk tolerance – Trading requires accepting regular small losses.
The EA may not be ideal for traders looking for quick profits or unable to actively manage an automated system. Proper risk management is vital for long-term viability.
Using the Dead Zone Scalper EA
Here are some tips for traders looking to use the Dead Zone Scalper EA:
- Start with small position sizes – Gradually increase once effective settings found.
- Optimize over past data – Find best settings for current market conditions.
- Use conservative risk management – Limit drawdown and lot size growth.
- Monitor performance – Check for deteriorating metrics indicating re-optimization needed.
- Use recommended broker types – Works better with fixed and low spreads.
- Trade only EUR/USD initially – Expand to other pairs once mastered.
- Use a virtual private server (VPS) – For uninterrupted trading and fastest trade execution.
Following good practices when using and monitoring the EA will give it the best chance of long-term profitability.
The Dead Zone Scalper EA provides traders with an automated tool that aims to generate profits through scalping based on clear trends. Backtesting shows promising results, indicating the potential for steady account growth over time. However, as with any EA, proper usage and risk management are vital.
For traders comfortable with automated systems and looking to compound small gains, the Dead Zone Scalper EA may be a suitable addition to a diversified trading approach. As always, thorough practice and testing is advised before committing real capital.