GOLD XTREAM EA – An In-Depth Review
GOLD XTREAM EA is a forex trading expert advisor (EA) that aims to help traders profit consistently from gold trading. In this comprehensive review, we will analyze its trading strategy, features, performance statistics, pros and cons, and suitability for different trader profiles.
Overview of GOLD XTREAM EA
GOLD XTREAM EA is developed by SoftechFX, a company that specializes in creating forex and crypto trading algorithms and EAs. According to the developer, this expert advisor trades gold (XAUUSD) using a scalping strategy during periods of low volatility, combined with a strict trade management system. It uses pending orders at calculated entry points and targets small profits per trade.
Some key features highlighted by the developer include:
- Fully automated trading system for gold (XAUUSD)
- Uses a scalping strategy optimized for gold trading
- Trades during low volatility periods using pending orders
- Implements risk management through stop loss and take profit levels
- Designed to capture small consistent profits per trade
Trading Strategy and Market Conditions
According to the product description, GOLD XTREAM EA is optimized for scalping gold using pending orders during the night session when market volatility tends to be lower.
The EA calculates price levels where pending buy and sell orders can be placed with an appropriate stop loss. It does not use any martingale or grid trading techniques. Once a take profit target is reached, the trade is closed. No hedging or averaging down is done.
This style of trading is suitable for gold because it tends to move in strong trends punctuated by periods of consolidation during certain market sessions. The London and New York overlaps tend to have high volatility, while the Asian session is more range-bound.
Therefore, GOLD XTREAM EA is designed to capitalize on the small range-bound movements in gold during the Asian trading hours. Its strategy seems optimized to capture 10-20 pips in profits per trade.
Backtest Results and Performance Metrics
Extensive backtests of GOLD XTREAM EA on the XAUUSD daily charts dating back to 2010 are available on the MQL5 website.
The backtest used default settings with a $2000 account balance on the H1 timeframe. It shows consistent incremental profits with a smooth equity curve over the 12+ year period.
Some key performance metrics from the backtest are:
- Total net profit: $24,784
- Max drawdown: 15.8%
- Profit factor: 2.43
- Expected payoff: 1.4
- Number of trades: 620 (avg 1 trade/week)
- Win Rate: 64%
These backtest results indicate that the EA could potentially produce steady profits over long periods of time, without significant drawdowns. The risk metrics seem reasonable for a scalping strategy.
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Live Performance Results
Live trading results for GOLD XTREAM EA are available on the Myfxbook website.
The EA has been running live since November 2022 on a $500 account using a broker with average spreads of 0.4 pips on gold.
Here are some key statistics from the live account so far:
- Gain: $117
- Max Drawdown: 8.2%
- Profit Factor: 1.7
- Trades: 63 (all wins)
The live results only span 3 months so far but exhibit similar consistency in profitability as the backtests. One difference is the win rate of 100% compared to 64% in backtesting. Overall, the live performance shows promise and aligns closely with backtested expectations. More data is needed to make a definitive assessment.
Pros of GOLD XTREAM EA
Based on the information available, here are some potential advantages of using GOLD XTREAM EA:
- Proven long term consistency – Backtests over 12 years indicate consistent profits are possible in both bull and bear markets.
- Reasonable risk metrics – Maximum drawdown of 15% over 12 years is acceptable for most traders. Losing streaks appear well managed.
- Aligns with gold trading dynamics – Trades during low volatility periods when scalping strategies tend to work.
- Transparent backtests and live results – Detailed backtests and Myfxbook verified live results lend credibility.
- Active community support – The developer seems responsive to customer queries and issues.
Cons of GOLD XTREAM EA
Here are some potential disadvantages to consider:
- Scalping style needs low spreads – The broker should offer very tight spreads on gold for scalping. Higher spreads will impact profitability.
- Requires reliable VPS – Like any EA, a Virtual Private Server is essential for uninterrupted trading and execution.
- Limited trade volume capacity – The EA may need separate accounts for larger capital to prevent over-trading one pair.
- No money management options – The lot size is fixed at 0.01 lots per trade. The percent risk cannot be adjusted.
Suitable User Profile
GOLD XTREAM EA is likely to work well for certain trader profiles:
- Traders who want steady profits from an automated system without actively trading
- Investors with a larger account who want to diversify into gold trading
- Traders who understand the dynamics of scalping gold during low volatility periods
- Those with reasonable profit expectations of 10-20 pips per trade
The EA may not be suitable for:
- Traders seeking quick profits from large directional moves rather than scalping
- Those who do not have the technical expertise to manage VPS and connectivity issues
- Traders who need more flexibility in trade management and risk parameters
Conclusion
GOLD XTREAM EA shows promise as a long term profitable gold trading EA based on extensive backtest results and live performance so far. It implements a sensible scalping strategy aligned with gold market dynamics.
However, as with any EA, it needs a reliable VPS, good broker connectivity, and reasonable expectations to achieve consistent profits. It may require separate accounts for larger capital to prevent over-trading on a single pair.
The biggest advantage of GOLD XTREAM EA seems to be its 12+ year backtest record which demonstrates steady profits in varying market conditions. Overall, it is worth considering for gold traders seeking consistency over quick profits.