Magic Star EA Review – A Powerful Forex Trading Robot
The Magic Star EA is an expert advisor (EA) for the MetaTrader 4 and 5 trading platforms that promises fully automated forex trading based on proven strategies. In this comprehensive review, we will analyze its features, performance metrics, pros and cons to determine if it’s worth the investment for your trading portfolio.
Overview of Magic Star EA
Magic Star EA is developed by Barat Ali Rezai, a trader with over 1 year of experience in creating automated trading systems. It is designed to trade 28 currency pairs including majors like EUR/USD and GBP/USD as well as crosses like AUD/CAD and NZD/CAD.
The core strategy relies on entering trades based on custom indicators and managing risks through features like stop loss on every trade. It also uses a unique drawdown control mechanism to survive market volatility.
Some of the highlighted features as per the developer are:
- Fully automated trading system for 28 forex pairs
- Inbuilt drawdown control for risk management
- Option for fixed or automatic lot sizing
- Compatible with all ECN/STP brokers
- No martingale, grid, or hedging
- LIVE trading results available
In terms of pricing, Magic Star EA is available for $500 for 2 licenses at the time of writing this review, after which the price will increase to $600.
Performance Metrics & Backtests
The developer has published limited details on Magic Star EA’s performance metrics based on backtests and some live accounts.
Total net profit over 5 years is $873,036 with a drawdown of 2.46%. These are certainly impressive numbers but realistic long-term performance can only be gauged through live trading.
The live account signals are available through MQL5 and show a gain of around 20-30% in the first few months of trading. However, there is no long track record available to analyze the longevity of performance.
While the current metrics seem promising, it’s difficult to depend on them given the lack of transparency around testing methodology and absence of long term live results.
Pros of Magic Star EA
Here are some of the main benefits and positive aspects of the Magic Star EA based on the information available:
Proven Strategy for Trading Multiple Pairs: The underlying strategy of identifying trades through custom indicators has shown positive results across 28 currency pairs in backtests. This versatility enhances the usage and profit potential.
Inbuilt Risk Management: By using stop loss on every trade, the EA prevents losing streaks during market volatility. The drawdown control mechanism also contributes to limiting losses.
Automated Trading & Hands-free Approach: Fully automated trading without needing manual intervention makes this suitable for beginners and experienced traders alike.
Reasonable Pricing Model: At $500 for 2 licenses, Magic Star EA is reasonably priced compared to many EAs in the market priced upwards of $1000.
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Cons of Magic Star EA
While the EA seems to have several pros, there are also a few cons worth considering before purchasing it.
No Detailed Information on Strategy: The developer has not revealed detailed information about the custom indicators and strategies used by the EA. This lack of transparency is concerning for serious traders.
Short Live Track Record: Despite having a few months of live results, there is no long term track record available to determine realistic performance. Short track records have limited relevance.
High Number of Pairs Increases Exposure: While trading 28 pairs seems like an advantage, it also means wider exposure to volatile moves across multiple pairs simultaneously. This heightens risk on live accounts.
Potential Overoptimization: Given the lack of details on testing methodology, it cannot be ruled out that the stellar backtest results involve curve fitting biases that reduce reliability of long term profitability estimates.
Verdict – Is It Worth Buying?
The Magic Star EA shows potential given its features and backtest metrics but lacks transparency around its strategy and testing. There is no long term track record and the short live results have limited relevance.
For beginners, it may be worthwhile to try this low cost EA on a demo account first to understand automated trading before risking capital.
For experienced traders, the lack of transparency is concerning and without long term proof, Magic Star EA does not seem reliable enough for allocation of significant trading capital.
While the EA seems to offer convenience through automation, the risks arising from lack of information and unverified performance outweigh the benefits at this point. Unless more clarity is provided on strategy and long term returns, the Magic Star EA does not seem to justify its price.
There are alternative EAs with more established track records and transparent operations at similar or lower price points. For anyone considering the Magic Star EA, it is best to request detailed performance reports from the developer before making a buying decision.