Deriv Hedge Master EA Review: A Comprehensive Analysis

Deriv Hedge Master EA is an automated trading software designed for Deriv, a popular online trading platform. This expert advisor (EA) claims to utilize advanced hedging techniques to generate consistent profits in the volatile financial markets. In this comprehensive review, we will analyze the key features, purported benefits, potential risks and overall viability of Deriv Hedge Master EA.

Deriv Hedge Master EA

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Overview of Deriv Hedge Master EA

Deriv Hedge Master EA is marketed as a low-risk, high-reward automated trading system for Deriv. It allegedly uses complex hedging algorithms to open complementary long and short positions in order to capitalize on market swings in either direction.

Some of the main features highlighted by the vendor include:

  • Advanced hedging logic to profit from volatility
  • Works on forex, commodities, cryptocurrencies
  • In-built risk management protocols
  • Suitable for both new and experienced traders

How Does Deriv Hedge Master EA Work?

According to the developers, Deriv Hedge Master EA is designed to monitor price action across multiple Deriv instruments and timeframes. It aims to identify trend patterns along with potential reversals early on.

Once opportunities are detected, the EA will automatically place pending orders in both buy and sell directions for the same instrument. For example, if the EUR/USD is in an uptrend, the EA may open a long position and a counter-trend short hedge at the same time.

As the price fluctuates, one of these orders will become profitable while the other acts as a hedge and reduces losses. The MT4 EA is programmed to close hedged positions selectively to lock in profits. It also trails stops to further secure any gains.

The vendor claims that this advanced hedging system allows the EA to generate steady returns regardless of market conditions. However, the actual logic is opaque and not revealed publicly.

Backtesting Results of Deriv Hedge Master EA

The developers have published months-long backtests for Deriv Hedge Master EA showing consistent profits across forex, commodities and cryptocurrencies.

For example, a 10-month backtest on Brent Crude Oil from 2020-2021 allegedly yielded over 650% compounded returns with a max drawdown of just 15%. Similarly, spectacular results are shown for US30, BTC/USD and other assets.

However, as is common with EA vendors, there are no verified forward trading results available to corroborate these claims. It is also not possible to independently analyze or reproduce the backtests. So the advertised results should be taken with skepticism.

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Pros of Deriv Hedge Master EA

  • Uses hedging to profit from volatility in either direction
  • Developed specifically for Deriv’s trading infrastructure
  • Includes risk management features to limit losses
  • Automated trading saves time and effort

Cons of Deriv Hedge Master EA

  • No transparency into actual trading logic
  • Lack of verified live trading results
  • Hedging can be risky if not executed properly
  • Requires monthly subscription fee
  • Poor customer support reviews

Verdict: Should You Use Deriv Hedge Master EA?

On paper, Deriv Hedge Master EA shows potential with its purported hedging approach to generate steady profits in varying market conditions. However, the lack of transparency around the actual trading strategy raises red flags. There are also no real-world trading records to validate the advertised performance.

Since hedging can be highly risky in untrained hands, traders should approach this EA with extreme caution. Never risk capital you cannot afford to lose. Conduct extensive backtesting across different assets and time periods before considering live trading.

Also, be wary of over-optimizing the EA based on hypothetical backtest results alone. Monitor live trades closely and maintain proper risk management. Be prepared to stop using the EA if it does not perform up to expectations.

Deriv Hedge Master EA may offer some value to experienced traders already familiar with hedging techniques. But for most retail traders, the risks likely outweigh potential rewards. Proceed with ample caution if you decide to try this EA.

Author: Dominic Walsh

I am a highly regarded trader, author & coach with over 16 years of experience trading financial markets. Today I am recognized by many as a forex strategy developer. After starting blogging in 2014, I became one of the world's most widely followed forex trading coaches, with a monthly readership of more than 40,000 traders! Make sure to follow me on social media: Instagram | Facebook | Youtube| Twitter | Pinterest | Medium | Quora | Reddit | Telegram Channel

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