Marvelous EA Review – An In-Depth Analysis
Marvelous EA is an automated forex trading expert advisor (EA) that trades using the Rate of Change (ROC) indicator. It aims to provide a simple and convenient trading experience for forex traders. This article provides an in-depth review and analysis of Marvelous EA.
Overview and Features
Marvelous EA was created by forex developers to trade automatically on the MetaTrader 4 and 5 platforms. Some key features of this forex robot include:
- Uses the ROC indicator to identify trends and make trades
- Implements the risky martingale method to recover losing trades
- Has stop loss and take profit levels on every trade
- Trails stop losses to lock in profits as the market moves
- Easy to install and use with default or custom settings
- Works on EURUSD, GBPUSD, and other major currency pairs
- Can also trade gold (XAUUSD) and stocks (NASDAQ)
- Requires a deposit of at least $100 for proper margin requirements
Trading Strategy and Method
The core strategy of Marvelous EA revolves around two key components:
ROC Indicator
The Rate of Change indicator measures the momentum of price movements by calculating the percentage change between the current price and the price a certain number of periods ago. Marvelous EA uses the ROC indicator to identify new trends and trade in the direction of the trend.
Martingale Method
This method involves doubling down on losing trades by doubling the position size after a loss, with the expectation that a subsequent trade will recoup the earlier losses. Although this can recover drawdowns quickly, it is an extremely high-risk strategy that can wipe out the entire account balance during high volatility.
By combining these two elements, Marvelous EA aims to profit fast by riding new trends spotted by the ROC indicator. If a trade moves against it, the martingale mechanism kicks in to recoup the losses rapidly.
Risk Management
Despite using the risky martingale approach, Marvelous EA does incorporate some risk management features:
- Stop loss on all trades to limit losses
- Take profit levels to lock in gains
- Trailing stop loss to protect profits as price moves favorably
The key risk management rule advised by the developers is to withdraw profits quickly and often to avoid account wipeouts from the martingale method.
Marvelous EA Performance and Backtests
Extensive backtesting is one of the best ways to evaluate the performance of an EA before using it with real money.
Developer Backtests
According to the developers, Marvelous EA performed spectacularly in their backtests:
- Over 300% average monthly returns
- Drawdown of about 20%
However, it is difficult to independently verify these claims without details of the backtest conditions and account settings used. Traders should take such promotional claims with skepticism.
Independent Backtests
On reviewing various independent backtests of Marvelous EA from third-party websites, these are the typical performance metrics observed:
- Return on Investment (ROI)
- 100% to 300% returns in some backtests
- High potential returns but inconsistent performance
- Drawdown
- Drawdowns of 10% to 30%
- Higher drawdowns likely in volatile markets
- Risk-Reward Ratio
- 1:2 to 1:5 risk-reward ratios
- Favorable ratios but high risk of ruin
Overall, Marvelous EA seems capable of generating very high returns during specific market conditions tested in hindsight. However, the exceptionally high drawdowns and risk from the martingale method makes it unsuitable for low risk-tolerance accounts. Traders should exercise abundant caution when using this EA in live markets.
Usage Tips and Recommendations
Here are some tips from developers and users to get the best results from Marvelous EA:
- Test thoroughly in demo first before going live
- Start with small position sizes to evaluate performance
- Use a ECN/STP broker with low spreads and fast execution
- Deposit at least $1000 to provide sufficient margin
- Monitor trades actively and close before volatility
- Withdraw profits quickly without reinvesting them
- Disable during major news events or low liquidity periods
- Use only on suitable currency pairs like EURUSD and GBPUSD
Careful usage along with the risk management advice can help traders exploit the profit potential of this EA. However, the risks cannot be fully eliminated.
Marvelous EA Verdict
Marvelous EA is a high-risk, high-reward forex robot for aggressive traders seeking very high returns. Its performance relies greatly on volatile market conditions and robust risk management by the user. Over-optimizing settings from curve-fitted backtests usually leads to blowups in live trading. Therefore, traders should approach this EA with extreme caution by using small position sizes and actively managing risks. While marvelous profits are possible, they come at the risk of marvelous drawdowns as well.
