Little Pips EA Review – An In-Depth Analysis
The Little Pips EA is an automated forex trading system that operates on the MetaTrader 4 and 5 platforms. This review provides an in-depth analysis of the EA’s strategy, performance, features, and ideal broker requirements to help traders evaluate if it’s the right solution for their needs.
Overview and Strategy
The Little Pips EA is designed as a scalping system that aims to capture small, frequent profits from short-term market moves. It trades the major currency pairs including EUR/USD, GBP/USD, USD/JPY, and USD/CAD using a 4-hour timeframe.
The EA’s strategy is based on following the dominant market trend. It uses a combination of technical indicators like moving averages and price action analysis to identify high-probability entry and exit points. Some key aspects of the trading strategy are:
- Entries are made when price pulls back to a moving average after a trend move
- Exits use trailing stops to lock in profits as the price moves favorably
- Strict risk management with stop losses and maximum drawdown limit
The goal is to capture moves of 15-30 pips by riding the short-term momentum in the market.
Backtesting over the past 5 years shows that it can produce these small wins consistently to accumulate to impressive gains over time.
Features and Tools
The Little Pips EA comes equipped with several features that enhance efficiency and trading performance:
- In-built risk management – It has maximum drawdown limits, stop losses, and position sizing rules to mitigate risk.
- Partial close feature – The EA closes a part of the trade at a pre-defined level to lock in some profits early.
- Stealth mode – Trades are randomly opened and closed to avoid detection by brokers.
- No martingale or grid – It does not use high-risk strategies that can wipe accounts.
- Regular updates – The developer releases new versions to keep it optimized to current market conditions.
These tools help traders execute the scalping strategy effectively over long periods.
Little Pips EA Performance and Backtest Results
Extensive backtesting shows that the Little Pips EA can produce steady profits from the high-probability trades it takes:
EUR/USD Backtest Results (2015-2020):
- Total net profit = $9,457
- Max drawdown = 9.2%
- Profit factor = 1.7
These metrics indicate good risk-adjusted returns with the EA scalping strategy. Note that live results may vary depending on market conditions and broker choice.
Real Account Live Results
The Little Pips EA developer shows latest results from a live trading account below. It shows the EA can translate the backtest performance into real profits consistently:
Little Pips Real Account Results
The key is choosing the right broker and account settings to minimize spreads, slippage and execution lags.
Broker Requirements
To achieve optimal performance with the Little Pips EA, traders need a broker that provides:
- Raw ECN/STP execution
- Tight spreads
- Low commissions
- Fast execution and minimum slippage
It’s recommended to use a specialized forex ECN broker and run the EA on a VPS service for best results. This minimizes lags, slippage losses, and other issues that can negatively impact performance.
Some suitable brokers include IC Markets, Pepperstone, and XM. These offer excellent trading infrastructure for automated systems like Little Pips.
Little Pips EA Final Verdict
The Little Pips EA provides traders with a robust scalping solution that can generate steady profits on small, frequent market moves. Backtests and live results validate that it has edge in trading the short-term momentum on major forex pairs.
With appropriate risk management and ideal broker choice, the EA strategy can be a hands-off source of income for traders. It’s available for a reasonable one-time fee – making it accessible for small and large account traders alike.
Overall, the Little Pips EA is a solid automated trading system for anyone looking to tap into the income potential of forex markets.
