The Smiley EA: An In-Depth Review

The world of forex trading is complex and competitive, with traders constantly seeking an edge to improve performance. In recent years, automated trading systems called Expert Advisors (EAs) have emerged as useful tools to automate trading strategies. One such EA that has been gaining popularity is the Smiley EA.

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In this comprehensive review, we will analyze the key features of Smiley EA, evaluate its backtested and live trading results across various platforms, and determine if it is worth investing in for volatility index trading.

Overview of Smiley EA

The Smiley EA is an automated trading system designed specifically for volatility index instruments, such as the Volatility 75 Index on Deriv. It utilizes an advanced algorithm to detect trends and volatility in the market to decide optimal entries and exits.

Some standout features of this expert advisor include:

  • Exclusive focus on Volatility 75 Index: The algorithm has been optimized just for this index instead of multiple markets. This results in better performance compared to EAs that try to trade different assets.
  • Two trading strategies to choose: Users can select either a scalping strategy with faster exits or a conservative strategy with wider stops depending on their risk tolerance.
  • Automatic trend detection: The EA dynamically detects trend direction without needing manual configuration.
  • In-built risk management: It has inbuilt stop loss and take profit functionality to automate trade management.

Now let’s analyze how the Smiley EA has performed in various backtests and live trading results.

Backtested Results

Backtesting refers to testing a trading strategy on historical data to analyze how it would have performed. Multiple backtests from different sources indicate that the Smiley EA can be potentially profitable in live trading.

An extensive backtest on Deriv spanning over 4 years shows that Smiley EA gained over 2000% returns with consistent profitability:

Smiley EA Backtest Results

These results utilize the conservative strategy with a larger stop loss. The scalping strategy backtest also shows consistent profits but with a higher drawdown.

Overall, the backtests present solid evidence that this EA can perform well in live trading. However, past performance does not guarantee future results. So let’s analyze some live accounts next.

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Live Trading Performance

Live trading results are the true test of any EA’s viability. Smiley EA has been traded on multiple live accounts with generally positive outcomes.

On a Deriv account traded using a VPS service, it gained 35% returns in 2 months with a safe risk-reward ratio using the conservative strategy:

Smiley EA Live Trading Results

The developer themselves have achieved upwards of 60% monthly returns as shown on their MyFXBook account below:

Smiley EA MyFXBook

These results help validate the profitability of Smiley EA observed in backtesting. For best results, traders should use low risk per trade, avoid major news events, and use a VPS service for uninterrupted trading.

Now that we have covered the performance, let’s evaluate some pros and cons.

Pros and Cons

Here are some notable advantages and disadvantages of using the Smiley EA:

Pros

  • Specialized algorithm optimized just for trading Volatility 75 index
  • Automatically detects trends without needing manual configuration
  • Comes with conservative and aggressive strategies to suit different traders
  • Inbuilt trade management features like stop loss and take profit
  • Profitable long-term backtests and live trading results
  • Affordable one-time payment model rather than monthly fees

Cons

  • More effective with larger account balances
  • Needs uninterrupted VPS connection for best results
  • Short-term drawdowns possible based on market volatility
  • Requires monitoring around major news events
  • Lacks advanced features like artificial intelligence

Considering the various pros and cons, Smiley EA seems like a worthwhile investment for volatility index traders looking for long-term gains.

Using Smiley EA

If you decide to purchase Smiley EA after reviewing the information so far, let’s briefly go through the main steps to set it up:

  1. Get access – Purchase Smiley EA through their website to gain access to the files and license
  2. Upload files – Upload the ex5 file, DLL file, and set files to your MetaTrader platform
  3. Add symbol – Make sure your account is connected to Volatility 75 index market data
  4. Configure settings – Optimize inputs like trade size and stop loss based on your account
  5. Start EA – Add Smiley EA expert advisor to a volatility 75 index chart and enable automated trading

That covers the basic process. Be sure to test automation on a demo account first and use prudent position sizing. With the right usage guidance, Smiley EA can be a useful addition for volatility traders.

The Verdict

In summary, the Smiley EA is a promising automated trading system specifically designed for the Volatility 75 index instrument.

Key aspects that make it stand out include its specialized algorithm, dual trading strategies, auto trend detection, and built-in risk management features. Extensive backtesting shows consistent profitability across over 4 years of historical data.

Live trading accounts have also shown solid returns of 35% to 60% on average when used properly. For these reasons, I can recommend Smiley EA as worthwhile buying decision for traders interested in volatility indices. It carries some risk like any EA, but has the potential for attractive long-term gains.

The one-time payment structure rather than monthly fees also makes it easily accessible for any level trader. With the right account balance, settings, VPS connection, and avoiding major news events, Smiley EA automated trading technology can give volatility traders the winning edge they need.

Author: Dominic Walsh
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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 | Linkedin | Youtube| Twitter | Pinterest | Medium | Quora | Reddit | Telegram Channel

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