Ultimatum Breakout EA Review: A Breakout Trading System That Delivers?

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The Ultimatum Breakout EA is a forex expert advisor that utilizes a breakout trading strategy to identify potential trading opportunities. Developed by Ruslan Pishun and launched in 2019, this automated trading system aims to capitalize on valid breakouts while minimizing false signals and equity drawdowns.

But does the Ultimatum Breakout EA deliver on its promises? In this detailed review, we’ll analyze how this expert advisor works, its features and settings, historical performance statistics, pros and cons, and more to determine if it’s worth considering.

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Overview of the Ultimatum Breakout EA

The core strategy behind the Ultimatum Breakout EA is identifying valid breakouts of key support and resistance levels using custom indicators. It then enters trades in the direction of the breakout, setting tight stop losses to limit downside risk.

Some key aspects of this expert advisor include:

Breakout Strategy: Uses multiple custom indicators to detect high probability breakouts and filter out false signals
Risk Management: Employs a small, fixed stop loss on all trades to protect capital
Adaptive Capabilities: Automatically calculates spread, sets pending orders, trailing stops, breakeven stops, and more
No Martingale: Does not use any compounding or martingale techniques to recover losses

The Ultimatum Breakout EA was optimized and backtested on the EUR/USD currency pair using the M30 and H1 timeframes. However, the developer states it can work on other symbols and timeframes as well.

Using the Ultimatum Breakout EA

Installing and setting up the Ultimatum Breakout EA is straightforward if you’re familiar with forex EAs. Simply attach it to your MetaTrader 4 or MetaTrader 5 platform and add it to the currency pair chart you wish to trade.

The inputs allow you to configure various settings like trade management features, times to trade, position sizing, and more. It also comes equipped with a panel that shows open trades, profitability metrics, account stats, and other helpful information.

While the EA aims to provide hands-free automated trading, it’s important to still monitor it periodically. You can utilize the built-in panel to track trades and statistics in real time. The developer also provides backtesting reports and account monitoring to demonstrate historical performance.

Strategy Logic and Trade Management

Now let’s take a deeper look into how the Ultimatum Breakout EA enters, manages, and exits trades:

Entry Signals: The expert advisor uses a series of custom indicators to identify breakouts of key support and resistance levels. Specific entry conditions must be met regarding volatility, momentum, and other metrics before entering a trade.
Trade Direction: If a valid breakout is detected, the EA will enter a buy order if price breaks above resistance or a sell order if price breaks below support.
Stop Loss: A fixed, small stop loss is set on all trades, usually around 20-30 pips. This aims to limit downside risk in case the breakout fails.
Take Profit: Most trades do not use a pre-set take profit level and instead exit using a trailing stop loss once profit targets are reached.
Trailing Stop: Trades are trailed by a dynamic trailing stop that follows profitable positions in order to lock in gains.
Break Even Stop: A breakeven stop can also be used to lock in profits once trades reach a specified level in profitability.
No Martingale: The system does not use martingale or compounding techniques for loss recovery.

As you can see, risk management is a central component of the Ultimatum Breakout EA’s logic. By using tight stop losses, trailing stops, and avoiding martingale, it aims to grow accounts while limiting drawdowns from losing trades.

Backtesting Results & Performance Metrics

Extensive backtesting is one way traders can gain confidence in a trading system before risking real capital. So what types of results has the Ultimatum Breakout EA achieved in historical testing?

According to the developer, optimized backtests of the EA on the EUR/USD M30 timeframe from 2018-2020 achieved the following performance metrics:

Total Net Profit: Over $23,000
Max Drawdown: Under 25%
Profit Factor: 4.0
Expected Payoff: 1:2.6 risk/reward ratio

These results demonstrate the EA’s potential to generate consistent profits over multiple years. The drawdowns remain reasonable relative to the total gains, indicating good risk management.

It’s also important to note the backtests were conducted using 99.9% modeling quality with real ticks data. Lower quality backtests can produce inflated, unrealistic results that fail to hold up in live markets.

In addition to backtesting, the EA has over 2 years of public forward testing available for scrutiny. You can view the latest verified results on the product page.

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Real User Reviews & Ratings

Beyond the vendor’s own reports, analyzing feedback from actual users can further help determine if an EA performs as advertised.

At the time of writing, the Ultimatum Breakout EA has received 63 reviews on the MetaTrader Marketplace averaging 4.52 out of 5 stars. Positive testimonials mention aspects like:

Consistent automated profits
Strong risk management
Works as described

The most common complaints cite difficulty using the EA profitably on live accounts. However, this is often due to a lack of trading experience rather than issues with the software itself.

Pros & Cons of the Ultimatum Breakout EA

Based on our investigation, here are some of the main advantages and potential downsides to consider:

Pros

Uses effective breakout strategies
Adaptive trade management features
Limits risk on each trade
Extensive backtesting and forward testing
Reasonable cost

Cons

Requires effective money management
More suited to experienced traders
Drawdowns still possible during losses
Locked to one trading account

As with any automated trading system, proper usage and money management are vital to long-term success. The Ultimatum Breakout EA gives traders a rules-based method to capitalize on breakouts, but it still takes skill to trade profitably.

Conclusion – A Worthwhile Breakout Tool

The Ultimatum Breakout EA implements an adaptive breakout strategy focused on high probability trades and strict risk control. Backtesting and user reviews demonstrate its potential to generate consistent gains over time.

For experienced traders looking to automate a proven breakout method, the Ultimatum Breakout EA is a worthwhile option to consider. As always, use prudent position sizing and risk only a small amount of capital until you have gained confidence in the system and your broker’s execution.

The core foundations of identifying quality breakouts, managing risk, and trailing profits are principles all traders can benefit from. While not a magic bullet, the Ultimatum Breakout EA provides a structured way to employ those principles effectively.