Hamster Scalping EA – In-Depth Review and Performance Analysis
The Hamster Scalping Expert Advisor (EA) is a popular automated trading system that aims to generate profits through scalping the forex markets. Developed by Ramil Minniakhmetov and sold on the MetaTrader Marketplace for $30, this EA has received over 200 reviews and 6,600 comments, indicating its widespread use among retail forex traders.
In this comprehensive review, we will analyze the key features of Hamster Scalping EA, assess its strengths and weaknesses, examine performance statistics, and determine if it is worth the investment for prospective buyers.
Overview of Hamster Scalping EA
The core strategy of the Hamster Scalping EA revolves around scalping, which refers to a trading style where profits are made through numerous small wins. The EA aims to capitalize on short-term price fluctuations across currency pairs using two indicators – the Relative Strength Index (RSI) and the Average True Range (ATR).
- Fully automated – Once configured, the EA will open, manage and close trades automatically without any manual intervention. This allows for effortless 24/7 trading.
- Two trading modes – Choose between a regular scalping mode and an aggressive martingale mode. The latter risks larger losses for bigger potential gains.
- Multiple timeframes – While optimized for the 1-minute (M1) chart, Hamster Scalping EA can also trade effectively on the M5 and M15 timeframes.
- Detailed statistics – Integrated tools allow traders to analyze the EA’s past performance across multiple metrics like profit factor, expected payoff, max drawdown etc.
Recommended broker requirements:
- Tight spreads between 2-5 pips
- Fast execution without any slippage or re-quotes
- Low-latency VPS for optimal performance
The developer recommends starting with a minimum account balance of $100 when using this EA.
How the Hamster Scalping EA Works
As the name suggests, Hamster Scalping EA aims to profit from the markets through scalping. It does this by identifying overbought and oversold levels using the RSI indicator, and entering trades when volatility spikes upwards as measured by ATR.
The logic goes like this:
- The EA analyzes price action across a currency pair using two timeframes – a slower timeframe for overall trend direction and a faster chart for entries and exits. Common combinations include H1/M1 or H4/M5.
- Entries occur when the faster timeframe’s RSI moves above a specified overbought level or below an oversold level. This signals potential reversals.
- Trades are filtered using the ATR indicator on the faster chart – the EA only enters if volatility has spiked over a set threshold. This avoids slow markets.
- Once in a trade, the initial stop loss and take profit levels are set based on prevailing volatility (ATR). Trailing stops are used to lock in profits as the market moves favorably.
- If the aggressive martingale mode is enabled, then the EA will open additional positions with doubled lot sizes whenever a trade moves against the current direction. This risks larger losses in the hope of an eventual bigger payout.
- The EA monitors trading sessions and avoids placing trades outside of user-defined market hours. It is optimized for night trading.
In summary, the Hamster Scalping EA aims to ride short-term swings across currency pairs using a combination of RSI and ATR indicators. Its scalping approach attempts to accumulate steady profits over time. The optional martingale feature boosts profit potential but also increases risk significantly.
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- Proven long-term performance across years of live testing
- Clear and responsive developer support
- Regular updates to maintain profitability
- Hundreds of tweakable input settings
- Innovative use of RSI and ATR
- Narrow profit margins per trade
- Potential over-optimization for current markets
- Aggressive martingale heightens account risk
- Requires flawless broker execution
Next, let’s analyze the EA’s historical performance to gauge real-world profitability.
Live Performance Results of Hamster Scalping EA
Extensive backtests are common among EAs, but live forward tests better assess real-world viability. Thankfully, the developer provides verified real account results across several years.
- Profit factor: 2.05
- Max drawdown: 27.80%
- Total net profit: +235.17%
- Annual returns: 35% to 85%
These results are impressive – maintaining an average 45% yearly return across multiple years requires a robust and adaptive trading strategy.
However, traders should note that the provided account statements trade with extremely high leverage and low account balances between $100 to $500. This contradicts the developer’s minimum recommendation of $2500 for the martingale mode.
The main risk metrics are:
- High leverage – up to 1:3000 used resulting in massive exposure
- Low equity – average equity between $100 to $500 only
Trading with such extremes can lead to margin calls and full losses even after years of profits. Traders should exercise prudent risk management and avoid over-leveraging despite the EA’s profitability.
Now let’s compare the EA’s pricing to similar products.
Pricing and Value Proposition
The Hamster Scalping EA is available for a one-time fee of $30 on the MetaTrader Marketplace without any recurring charges. This is 70% to 90% cheaper than comparable scalping EAs priced between $100 and $250.
Considering its low cost and long track record, the EA offers good value assuming traders use reasonable leverage and position sizing. It provides an affordable entry point into automated scalping that may suit beginner or mid-level traders.
However, traders must remain aware of the EA’s high-risk nature – while yearly gains often exceed +45%, max drawdowns also average around -30%. Responsible money management is mandatory, or else account wipeouts become likely over long periods as seen in some of the live results.
Finally, let’s summarize the main pros and cons of this product.
Overall rating: 4 out of 5
The Hamster Scalping EA implements an innovative approach to scalping based on RSI and ATR analysis. Its lengthy track record shows consistent profitability applied over multiple years. For an asking price of just $30, it offers good value to traders seeking affordable automation.
However, prudent risk practices are an absolute must given the high-risk nature of this EA. Over-leveraging or poor money management will likely end badly despite good annual returns on paper. Traders should take effort to understand how this EA trades and appropriately limit position sizing and leverage before going live.
- Profitable over multiple years with +45% average yearly returns
- Very affordable at just $30
- Hundreds of customizable input settings
- Clear and responsive developer support
- High risk of ruin over long term without good money management
- Possible curve-fitting to past market conditions
- Narrow profit margins per trade require flawless execution
- Not suitable for low-risk conservative traders
In conclusion, at its current low price point, the Hamster Scalping EA is worth experimenting with using strict risk controls and reasonable leverage. It implements a unique approach to scalping using RSI and ATR that has delivered steady profits over multiple years. Despite a few caveats, this EA offers good value for money given the income potential.