In FX trading, the term “drawdown” points to the between a high point in the balance of your trading account and the next low point of your account's balance. Quite naturally it is an important metric for all forex trading software, in particular, fx expert advisors. The more drawdown rate an EA has, the more risk it is taking while trading. Traders tend to select EAs with low drawdown rates. A drawdown rate of less than 20% is favourable to risk-averse traders. To provide an example, there are 5 Expert Advisors that have drawdowns of less than 20%.
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Forex Cyborg
Forex Cyborg is a scalping EA with drawdown rate of 7.28%. According to the developers of this EA, it does not use any martingale strategies and instead gives users the option of choosing between 2 settings – normal and conservative. Depending on the currency pair chosen, the EA open trades during 18:30 and 23:30 GMT. There are 4 packages available for Forex Cyborg – Basic, Standard, Gold and Premium. According to trading results provided by the EA, it can achieve a daily profit percentage of 0.39% and a monthly percentage of 12.26%.
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Vader Forex Robot
Vader is a forex robot that has a drawdown rate of 7.28%. It utilises Fibonacci and works on pairs like Eur/USD, GBP/USD, USD/JPY, EUR/GBP and others. The EA works by using Fibonacci levels to automatically find predictable forex trades and revolves around support and resistance. The main aim of this software is to trade large movements and retracements by combining Fibonacci thresholds and trends shifts.
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Hamster Scalping EA
With a drawdown rate of less than 11%, Hamster Scalping EA is a scalper built with a no martingale approach. This forex robot trades exclusively at night to take advantage of an ATR based filter and the RSI indicator to pick out sharp entry points. At $45, it is one of the cheapest options for scalping in the market and comes with free updates. The developer provides us with several recommended settings and advises the software to be used with a very fast VPS preferably with a latency of not more than 3.
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Forex Steam
With a drawdown rate of 18.56%, Forex Steam provides automatic forex trading by applying a modified scalping strategy. It is described as a time-restricted scalper which is a reliable way of growing accounts. The EA only opens 1 trade at a time and uses a host of indicators such as Williams R%, Relative Strength Index, Stochastic Oscillator, Moving Average Convergence Divergence, ADX Trend Strength and Standard Deviation. Each of these indicators serves a different purpose and have been added over a period of ten years. The EA also provides over thirty different parameters, making this one of the most customizable Eas on this list.
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Forex Flex EA
Forex Flex EA is a low-risk forex robot that has a drawdown rate of less than 10%. It uses something called virtual trades which automatically opens trades in the background, using these to monitor current market conditions. With this EA, users get a free members area forum, an NFA and FIFO compatible software, MT4 and MT5 compatibility, a list of twelve strategies to choose from, a proprietary news filter and built-in money management features. As a result, this EA can trade almost any currency pair.
Conclusion
While drawdown rates are important, it is also recommended to look at other features of an EA, most notably the developer’s background. A lot of Eas advertise false numbers regarding their drawdown rates which are aimed at gullible traders. To avoid these, always make sure you’re downloading the EA from a trusted source after going through recommendations and reviews.
