Terminator EA – A Comprehensive Review
Terminator EA is a forex trading robot that utilizes advanced algorithms to automate trades. In this comprehensive review, we will analyze the performance, features, pros and cons of this expert advisor (EA) to determine if it is worth using for forex trading.
Overview of Terminator EA
Terminator EA is marketed as a highly profitable forex trading robot that can generate consistent returns automatically. It uses a combination of technical indicators like moving averages and RSI to identify high probability trading opportunities.
Some of the key features of Terminator EA include:
- Fully automated trading – once configured, the EA will open and manage trades automatically based on its strategy.
- Compatible with MetaTrader 4 and 5 platforms.
- Uses technical indicators like RSI, moving averages, Bollinger Bands etc. to identify trading opportunities.
- Incorporates solid risk and money management to limit losses.
- Trades multiple currency pairs including EUR/USD, GBP/USD, USD/JPY etc.
- Comes with backtested results to showcase past performance.
Performance of Terminator EA
As per the vendor’s website, Terminator EA has been extensively backtested across multiple currency pairs and timeframes. The posted backtest results indicate that it is a highly profitable forex trading robot.
Some of the key backtest metrics are:
- Total net profit of $980,000+ on EUR/USD (H1 timeframe, 2010-2020).
- Maximum drawdown of 18.4%.
- Over 90% winning trades.
- Average profit per trade of 120 pips.
These backtest results showcase the potential profitability of Terminator EA. However, it is important to note that backtested results do not guarantee similar performance in live trading. Market conditions keep changing dynamically and it is critical to forward test the EA before committing real capital.
In terms of live performance, there are a few MyFXbook verified accounts available that show decent returns over the past 2 years. For instance, one account shows around 140% compounded returns in 2 years with a max drawdown of 30%. Of course, past results do not guarantee future performance.
Overall, the backtests and some live results indicate that Terminator EA has the potential to generate steady profits if used correctly. However, traders need to keep their expectations realistic and use proper risk management.
Working Mechanism of Terminator EA
Terminator EA uses a combination of indicators and price action concepts for generating automated trading signals.
Some of the key components of its trading strategy include:
- Trend Detection – The EA uses two moving averages with different periods to determine the overall trend direction. For example, a 50 and 100 EMA.
- Momentum – The RSI indicator is used to gauge momentum. Oversold RSI levels are used as a trigger for long trades, while overbought levels are for short trades.
- Entry Signals – The EA opens trades in the overall trend direction only when RSI reaches oversold/overbought levels. This helps increase the probability of winning trades.
- Risk Management – Terminator EA has inbuilt position sizing and stop loss rules to limit the risk per trade to 1-2% of capital. This ensures protection of trading capital.
- Take Profit Targets – Profit targets are set at pre-defined levels to lock in gains from profitable trades. Trailing stops are used to ride out winning trades.
The combination of trend, momentum and disciplined risk management is the core concept behind Terminator EA. Backtests indicate this is a statistically profitable trading approach.
Here are some of the key advantages of using Terminator EA for forex trading:
- Fully Automated – Once configured correctly, the EA will automatically execute trades even when you are away from the computer. This ensures you never miss out on good trading opportunities.
- Profitable Strategy – Backtests and some live results indicate that the trading strategy of Terminator EA has the potential to generate steady profits over time.
- Risk Management – The EA has solid risk management protocols built-in to limit losses on individual trades. This protects your trading capital.
- Scalable – You can run Terminator EA on multiple currency pairs and timeframes. This diversification can boost profitability.
- Customizable – Users can tweak the EA settings like trade entry rules, stop loss, take profit etc. if needed to align it with their risk appetite.
- Support – The vendor provides support and regular updates to further refine the performance of the EA.
- Cost – At a one-time cost of $97, Terminator EA is reasonably priced compared to many other forex EAs and robots in the market.
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While Terminator EA has several advantages, there are a few limitations to consider as well:
- Overoptimization – While the backtest results are impressive, there is a risk that the EA has been overoptimized and curve-fitted to historical data. This may affect real performance.
- No guarantee – As with any EA, there is no guarantee that historical performance will hold true in live trading. Market conditions keep changing.
- Monitoring needed – The EA needs periodic monitoring to ensure everything is working as expected. System failures can lead to unintended trades.
- Scalper – Terminator EA seems optimized for scalping strategies with small profits. This may not align with all trader’s goals and risk appetite.
- Locks capital – Running the EA 24/5 means your trading capital will be locked. You cannot manually intervene or exit trades if needed.
- Chance of losses – There is still a chance of losses given changing market conditions. Traders need to be prepared for periodic drawdowns.
Overall, Terminator EA carries risks like any other trading robot. Proper precautions and risk management are must before using it for live trading.
Using This EA Successfully
Here are some tips to use Terminator EA successfully for the best chance of consistent profits:
- Start small – When using the EA for the first time, run it on a demo account and with small position sizes. This will help evaluate real performance before committing larger capital.
- Optimize settings – Spend time backtesting and forward testing the EA thoroughly with different settings to find the optimal configuration aligned with your risk appetite.
- Manage risk – Use proper stop losses on every trade. Risk only 1-2% of capital per trade. Have a risk management plan for drawdowns.
- Monitor regularly – Check the EA account periodically to ensure there are no unexpected losses or errors. Be prepared to intervene if something looks odd.
- Diversify – Run the EA on multiple pairs and accounts using a percentage allocation per pair to diversify risk.
- Stay updated – Ensure you have the latest version of Terminator EA and keep it updated periodically for any bug fixes and enhancements.
- Be realistic – Have realistic profit expectations. Backtests never mimic real trading accurately. Focus on steady gains over long term.
Using Terminator EA needs patience and discipline for best results. Traders need to still actively manage their account instead of relying on the EA blindly.
Verdict – Should You Use Terminator EA?
Terminator EA shows potential based on backtest results but has risks like any automated trading system. It can simplify the process of trading and may generate steady returns if used wisely.
Here are some scenarios when using Terminator EA would make sense:
- For traders who want hands-free automated trading without watching charts all day.
- For diversifying trading capital across multiple currency pairs and accounts.
- For traders who prefer technical strategies based on trend, momentum and risk management.
- As one of the EAs in your portfolio alongside other strategies.
However, Terminator EA may not be suitable for all traders given its risks. Use it only if you fully understand how it works and are ready to actively manage your account.
As with any EA, it is critical to:
- Backtest it thoroughly with your broker’s data.
- Start with small capital to evaluate real performance.
- Use prudent risk management on every trade.
- Monitor the account regularly for best results.
Provided you take these precautions, Terminator EA can be a profitable addition for automated forex trading alongside other strategies you use.
Terminator EA provides a way to automate technical trading strategies based on trends and momentum. The backtests and some live results show promise. However, as with any EA, there are inherent risks when used for live trading.
Manage your expectations realistically, use proper capital allocation per pair, implement risk management protocols on every trade, and monitor account performance regularly. Additionally, be prepared to intervene if the EA behaves erratically.
Used prudently, Terminator EA can simplify trading and potentially generate decent automated profits. But blindly relying on it without managing your account actively can be risky.
Treat this EA as one of the tools in your trading arsenal alongside other strategies you manually implement. With realistic expectations and good risk practices, it may complement your overall approach well.