EA Tretharis- H1 - Net Profit

Your expert advisor (EA) test result shows impressive profitability but also highlights some significant areas of risk. Here's a detailed review:

Key Performance Metrics:

• Initial Deposit: $500
• Total Net Profit: $81,019,254.76
• Profit Factor: 1.38
• Total Trades: 12,923
• Win Rate:
  • Short positions: 69.75%
  • Long positions: 73.34%
• Largest Profit Trade: $768,300
• Largest Loss Trade: $502,180
• Average Profit Trade: $31,549.11
• Average Loss Trade: $59,807.12
• Maximal Drawdown: $15,850,540 (37.38%)
• Relative Drawdown: 88.76%

Positive Aspects:

1. Profitability: A total net profit of over $81 million from an initial deposit of just $500 is outstanding, showcasing the EA’s potential.
2. Win Rate: Your EA has a high win rate, with 72.33% of all trades being profitable. Both short and long positions have solid winning percentages.
3. Profit Factor: At 1.38, the EA generates $1.38 of profit for every $1 of loss, which is decent though not exceptionally high.
4. Expected Payoff: The expected payoff per trade is $6,269.38, which is very positive given the average profit trade is more than double the average loss trade.

Risk Concerns:

1. Drawdown Levels:

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   • Maximal Drawdown of 37.38% ($15.85 million) is very high. It means the strategy experienced a substantial loss relative to the account balance at some point, which could have been stressful to manage.
   • Relative Drawdown of 88.76% suggests that at its worst, the account equity was reduced by almost 89%, which indicates an extremely high risk. This is critical since such deep drawdowns could lead to margin calls in live trading, and the account might not survive such fluctuations.

2. Risk/Reward Ratio:

   • The average loss trade of $59,807.12 is almost double the average profit trade of $31,549.11, indicating a relatively poor risk/reward ratio. Larger losses could easily erode the account during losing streaks.
   • The largest loss trade of $502,180 is significant, showing that large losses do occur.

3. Drawdown vs. Profit: Despite generating a large profit, the absolute drawdown is concerning. Losing nearly 89% of the equity at one point could indicate the need for tighter risk controls, especially given the EA's focus on high profitability.

4. Consecutive Losses and Gains:

   • Maximum consecutive wins (74) and losses (21) seem manageable, but the maximal consecutive loss of $3,085,540 in 8 trades is alarming. This indicates that a series of bad trades could quickly wipe out a large portion of your capital.

Suggestions for Improvement:

1. Risk Management: Consider improving the risk/reward ratio by using a better stop-loss mechanism or optimizing position sizes. The goal should be to reduce large losses and protect the account equity.
2. Drawdown Control: Implement measures to reduce the drawdown, such as dynamic lot sizing, or adjust your risk per trade to avoid deep drawdowns that could jeopardize your account.
3. Profit Factor: Aim to increase the profit factor to above 1.5 by improving entry/exit points, reducing the size of losing trades, and increasing profitability per trade.
4. Trailing Stop or Break-Even Rules: Implement tighter trailing stops or break-even points to lock in profits earlier and avoid larger losses.

Overall, the EA's profitability is impressive, but the associated risks are extremely high. Refining risk controls could improve long-term viability.

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