2% Daily EA - Pip Cop

**rsmereka** · 2010-09-20, 08:59 AM

This review is about the 2% Daily EA. I have no affiliation
with anyone in conjunction with this review. I obtained the 2% Daily EA from www.tradingsystemforex.com (note that you need to be an elite member to read anything). I have set up a dedicated Alpari UK demo account (500:1 leverage

) on my VPS and I am publishing the account data on MyFXBook.
Link: http://www.myfxbook.com/members/rsmereka/2-daily-ea/50941

This EA trades the GBPUSD pair on an M15 chart and is a scalper that looks for a breakout in areas of support and resistance

. Once it locates a breakout, it follows the short

-term trend

. I have set up this EA with a TP

of 200 pips (not that it is ever going to reach it), a SL

of 10 pips and a TS of 3 pips.

As you can see, this scalper is very different from most scalpers in that the SL

is only 10 pips and the risk:reward ratio is very high (potentially 1:20). The winning rate

is very low but with a very high risk:reward ratio, the EA does not need to have a high winning rate

in order to be profitable.

The EA only ever opens one trade at a time the way I have the EA configured right now.

I am trading one percent risk (free margin

* 0.01 / SL

(10 pips)) fixed lot and I will be adjusting the lot size once per month.

Please see the following posts for backtest data.

Rick

**rsmereka** · 2010-09-20, 11:33 AM

My first attempt to backtest the 2% Daily EA did not do well. This backtest is using the same primary strategy as the manual system, which is: 10 pip TP

, 10 pip SL

and no TS.

The equity curve is in the wrong direction.

Rick

**rsmereka** · 2010-09-20, 12:00 PM

In this second backtest, I kept the same settings as the previous backtest except I added a 3 pip TS (trailing stop).

This strategy is one of the four strategies the author suggests in the manual 2% Daily system.

The equity curve no longer goes straight down. It is chaotic but does reach some peaks.

This backtest only covers the period Sep 1 to Sep 13 of this year. On an M15 chart, backtesting years worth of data takes a very long time.

Rick

**rsmereka** · 2010-09-20, 12:23 PM

In this backtest, I kept the same settings as the previous one except that I increased the TP

to 100 pips. MM is off and lots are fixed at 0.10 per trade.

The equity curve still reaches a peak but is a lot smoother.

Since this backtest, I have further increased to TP

to 200 pips.

I am working on a backtest right now that covers these settings in the time period Jan 1, 2009-Sep 13, 2010. So far, it has been running 5 days. It will post this backtest (as much as I can, it might be too large) as soon as it is complete.

Rick

**rsmereka** · 2010-09-26, 03:29 PM

The 20 month backtest was finally finished after running 9 days. And then, disaster strikes, power outage. I had the PC on a UPS but the outage was too long and the PC died.

Back to the drawing board. I'll start another one say from Jan 1 this year.

I have loaded all the trade information into an MT4Analysis database and I am starting to analyze trade win/loss in terms of time distribution and day of week. What are winning hours and losing hours and which days of the week are winners and which are losers. The original strategy calls for only trading the London and New York sessions. Right now, the EA has no inputs for restricting hours. I edited the EA's source code and the good news is that the hour filtering code is there but the author has not made the variables extern and therefore, they are not visible in the EA settings.

This EA trades a lot. In it's first week, it averaged 13.6 trades a day. Your broker

will love this. Unfortunately, the win rate

is currently only 35%. That is the reason why I am studying the win/loss in terms of the hour of the day and the day of the week.

Once I get enough trade information (say two weeks), I will be setting up time and day trade filtering and I'll see whether I can get the win rate

up higher.

Rick

**rsmereka** · 2010-09-28, 08:17 AM

Ok,

I finally finished the backtest from Jan 1, 2010 to Sep 17, 2010. The strategy is barely profitable during this time frame. I used fixed lot of 1 which with a starting balance of 10K is 1%. DD is just over 22%.

I am now going to do some day/time filtering and see if I can raise the win percent by removing the unprofitable times.

Rick

**rsmereka** · 2010-10-03, 05:43 PM

After concluding that this EA will not be profitable, I have pulled it from the demo account and closed the MyFXBook account.

Rick

JohnTheTrader · 2010-11-09, 06:09 AM

Can you provide me forwardtesting results?

**rsmereka** · 2010-11-09, 09:08 AM

Quote:

Originally Posted by JohnTheTrader

Can you provide me forwardtesting results?

This EA was not profitable and demo forward test was stopped.

Rick

Leticia · 2010-11-10, 10:46 AM

Hi rsmereka! Can't PM yet, so had to share this here in case you and others are interested.

A great free EA I downloaded yesterday from forextoolshop made over $1800 and over $300 on 2 MT4s in minutes! Not sure how consistent it will be but for now it works great! I shared this knowledge with pipcop too. My ForexOverdrive is doing great too and customer support is excellent! My MD is still resting. Have a lovely day in Canada! Enjoyed your country, btw, many years ago.