Shizuka EA Review: A Powerful Automated Trading Solution
The Shizuka EA is an expert advisor designed for the MetaTrader 4 trading platform that aims to help traders profit in the forex market through automated algorithmic trading. In this comprehensive review, we will analyze the key features of this trading software, assess its strengths and weaknesses, and determine if it is worth purchasing.
Overview of the Shizuka EA
The Shizuka EA is marketed as a fully automated trading system that leverages a triple moving average crossover strategy coupled with advanced technical analysis to identify high-probability trading opportunities.
Some of the main features highlighted by the developer include:
- Fully automated trading without manual intervention
- Customizable moving average settings
- Additional confirmation through price action analysis
- Adaptive money management features
- Low drawdown with average monthly returns of 30-50%
- Compatibility with all currency pairs and timeframes
The EA sells for $299 but is also available as a free download from various websites. The free version has all the core functionality but limited usage.
Next, let’s analyze how the Shizuka EA works and the technology powering it.
How the Shizuka EA Works
The core strategy of the Shizuka EA revolves around triple moving average crossovers. Moving averages are lagging indicators that smooth out price action by taking average closing prices over a set period.
When a faster moving average crosses above or below a slower moving average, it signals a potential change in trend direction. This crossover system forms the basis of many popular forex trading strategies.
The Shizuka EA allows traders to choose from five different types of moving averages – simple (MA), exponential (EMA), smoothed (SMMA), weighted (WMA) and Hull (HMA). The ability to customize the moving averages adds a unique element of flexibility to this EA.
However, the EA does not trigger trades immediately when crossovers occur. It utilizes additional technical analysis factors to validate the crossover signals. These include:
- Price action analysis: Analyzing candlestick patterns, support/resistance levels etc.
- Pattern recognition: Identifying continuation and reversal patterns.
- Support and resistance calculation: Key levels that act as barriers for price movement.
This combination of moving average crossovers plus multi-factor confirmation provides a rigorous method for identifying high probability trades.
The EA also leverages adaptive money management based on account balance and volatility filters to optimize performance. Overall, it aims to offer a comprehensive automated trading solution for forex traders.
Performance Metrics & Backtest Results
According to various third-party backtests, the Shizuka EA demonstrates consistent profitability across different currency pairs and timeframes:
Timeframe: 15 minutes Pairs: EUR/USD, GBP/USD, USD/CAD Total trades: 2197 Wins: 1502 (68.4%)
Draws: 86 (3.9%) Losses: 609 (27.7%) Profit factor: 1.7 Max drawdown: 15.8%
These metrics indicate good performance with a high percentage of winning trades, low drawdown, and decent risk-reward ratios.
However, past results do not guarantee future performance. Backtests do not account for liquidity issues, spread changes, and other real market conditions. Live results may vary.
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Strengths of the Shizuka EA
Customizable trading strategy: The ability to select from five different moving averages provides flexibility to customize the EA’s core strategy. Traders can experiment to find the best settings for their risk appetite.
Multi-factor signal confirmation: Combining moving average crossovers with price action and pattern analysis improves the accuracy of trade signals. This enhances risk-reward ratios.
Adaptive money management: Dynamic position sizing based on account balance aims to preserve capital and maximize profits. This feature helps manage downside risk.
Fully automated trading: The EA handles every aspect of trading without requiring any manual intervention. This allows for convenience and ensures disciplined strategy execution.
MT4 integration: Seamlessly integrates with the popular MetaTrader 4 platform. Easy to install, use, and monitor. Compatible with various brokers.
Weaknesses of the Shizuka EA
No guarantee of profit: Like any EA, the Shizuka does not guarantee positive results. Improper usage and live trading risks can result in losses exceeding deposited capital. Traders should exercise adequate risk management.
Potential overoptimization: While backtest results seem impressive, excessive curve-fitting on historical data can cause problems with live trading. More forward testing is needed to assess true performance.
Requires monitoring: Even though the EA trades automatically, traders still need to regularly monitor system behavior, Internet connectivity, VPS issues, account changes etc. Lack of monitoring can quickly cause problems.
Not beginner friendly: With features like money management and moving average selection, the Shizuka EA is not very beginner oriented. Novice traders may find it difficult to use optimally without sufficient knowledge.
Limited customer support: For an EA priced at $299, the developer provides integration assistance but very limited ongoing customer support. This can be frustrating for traders needing regular help.
Verdict: A Worthwhile Investment for Disciplined Traders
The Shizuka EA brings some unique aspects like customizable moving averages and multi-factor signal confirmation that enhance the typical triple moving average crossover system. Backtest statistics indicate good risk-reward ratios and consistent profits.
However, traders need to be realistic about their expectations. This is not a magic money making machine. Success will require an understanding of the logic behind the EA, disciplined usage, and robust risk management. Within these constraints, the Shizuka EA can be a worthwhile investment.
Overall rating: 4 out of 5 stars
So in summary, while the Shizuka EA has some drawbacks, its strengths in terms of automated strategy execution, customization, and risk management make it a compelling option for traders willing to put in the time and effort to use it properly.