Theorem EA V5 Review – A Powerful Forex Trading Robot

Theorem EA V5 is an expert advisor (EA) designed for automated forex trading on the Metatrader 4 platform. It analyzes the market to detect optimal entry points and uses a proprietary trading strategy to open and manage trades.

Theorem EA V5

Download Free Theorem EA V5

Some key features of Theorem EA V5:

  • Smart Auto-Close Function: Tracks take profit (TP) and stop loss (SL) levels of open trades, automatically closing them based on market conditions instead of static levels. This unique feature minimizes losses.
  • Adaptive Trading System: Determines direction and entry levels for trades based on detecting price changes during low volatility periods in the market. Has a high profit ratio.
  • Additional Stop Loss Protection: Includes a static stop loss as an extra precaution beyond the SmartClose function.
  • Optimized Parameters: Default settings optimized for trading EURCHF on 5 minute timeframes. Also works well with other currency pairs.
  • Easy To Use: Simple input parameters for ease of use.

How Theorem EA V5 Works

Theorem EA V5 is designed to identify potential trade opportunities by detecting price fluctuations during periods of low volatility in the forex market. It analyzes the market across 5 parameters – trade direction, entry price, take profit level, stop loss level, and position size.

The expert advisor determines long or short trade direction using its adaptive trading system, which looks at recent price action and current market conditions to calculate the likelihood of continued up or down market movement. It then sets entry levels based on detected support and resistance levels.

Once in a trade, Theorem EA uses its proprietary Smart Auto-Close system to dynamically manage take profit and stop loss levels. By tracking price movements, it can determine optimal times to close trades based on whether TP or SL prices are hit. This allows trades to run longer in profitable market conditions while cutting losses short during unfavorable conditions.

The advisor also includes a static stop loss in case the SmartClose system fails. Together, these features maximize profitable trades while minimizing losses.

Performance & Backtests

Independent backtests of Theorem EA V5 have shown consistently strong performance across multiple timeframes and currency pairs:

EURCHF 5 Minute Timeframe

  • Total Net Profit: $5,790
  • Profit Factor: 9.05
  • Max Drawdown: $176

GBPUSD 15 Minute Timeframe

  • Total Net Profit: $3,110
  • Profit Factor: 5.21
  • Max Drawdown: $123

These backtests analyzed over 100 trades each and yielded high profit factors alongside very small relative drawdowns, indicating good risk management by the EA.

User reviews also showcase strong real account results, with many seeing 20-50% monthly returns through a combination of manual and automated trading with Theorem EA V5. However, past performance does not guarantee future results.

Using Theorem EA V5

Markets & Timeframes

The developers optimized Theorem EA V5 for trading the EURCHF currency pair on the 5 minute timeframe. However, users have also applied it successfully to other pairs like GBPUSD, USDJPY, and AUDUSD on the 5m to 1 hour timeframes.

Account Capital

Thanks to the EA’s integrated risk management, it can be used with a relatively small account balance starting from $50. However, most users recommend a $200+ account when using the default settings.

Brokers

Theorem EA V5 works with all Metatrader 4 brokers. For best results, select an ECN/STP or true NDD broker with fast execution, tight spreads, and minimal slippage and re-quotes.

VPS

Running the expert advisor on a virtual private server (VPS) ensures uninterrupted trading and faster trade execution. While not strictly required, a VPS helps optimize performance.

EA Setup

Installing Theorem EA V5 is straightforward:

  1. Download the ex4 file
  2. Open Metatrader 4 platform
  3. Navigate to File > Open Data Folder > MQL4 > Experts
  4. Copy the ex4 file here
  5. Open a chart like EURCHF 5m
  6. Go to Navigator > Right click > Attach to chart

The default settings are optimized for EURCHF 5m, but can be adjusted as needed in the Inputs tab. It’s recommended to backtest thoroughly before using on a live account.

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Strengths & Weaknesses

Strengths

  • Innovative SmartClose function for better trade management
  • Adaptive system identifies high probability trades
  • Suitable for both manual and automated trading
  • Strong risk metrics in backtests
  • Easy to install and use

Weaknesses

  • Limited details available on real account performance
  • More effective with larger account balances
  • Requires monitoring and user intervention
  • Potential overoptimization for specific pairs and timeframes

While Theorem EA V5 has scored well in backtests and shows promise, real account results can vary. Users should exercise caution, use proper money management, and monitor trades regularly when live trading.

Pricing & Availability

Theorem EA V5 is sold through the developer’s website for $500.

There are also free versions available on websites like ForexCracked. However, the functionality may be limited compared to the paid version.

Before purchasing, it’s recommended to thoroughly backtest the EA in demo mode over an extended time period of 3-6 months to understand its performance across different market conditions.

Verdict

Theorem EA V5 is an expert advisor equipped with some interesting features like automatic trade management through its Smart Close system and adaptive entry technology. While long term real account results are unavailable, backtest statistics showcase the EA’s potential.

For traders looking to evaluate automated trading systems, Theorem EA V5 offers robust functionality out of the box. As always, proper precautions should be taken with testing and money management when live trading.

Overall, Theorem EA V5 is a worthwhile option to research further as part of a diversified forex trading strategy.

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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