Forex Expert Advisors : Pips Miner an Unbiased Review

Today’s review was actually a request from a fellow forex trader who wanted me to evaluate the claims and evidence of profitability of the pips miner expert advisor. My friend was almost convinced about buying this automated trading system and wanted me to tell him whether it was a good choice or not before he committed himself to it. I also received a request from a website visitor and another from a newsletter subscriber so I decided to review the system to satisfy everyone’s request.

This type of expert advisor is specially hard to review since to the untrained eye it may seem that the pips miner expert advisor actually has a good and substantiated amount of evidence to proof their claims. According to their website the pips miner expert advisor is able to make anywhere from 100 to 800% profits on single months, this are outrageous claims to start with. It becomes even more surprising when you realize that all these claims are based merely on backtesting evidence.

It is mainly because of cases like these that people often think that backtesting is absolutely useless. Backtesting is, on the contrary, one of the most useful tools available for measuring profitability in automated trading but it must be used within it’s limitations and it’s results must always be verified appropriately (I have a whole section in my ebook explaining this if you are more interested).

Of course, this expert advisor has other characteristics that make you believe it is very far from being long term profitable as it’s very high, almost 10:1 risk to reward ratio which means that this expert risks almost 10 dollars for every dollar it makes. The fact that take profit targets are relatively low also makes you believe that this expert may exploit one minute interpolation backtesting errors significantly, something which may absolutely revert it’s live trading results. Truth be told, this system looks like it would perform totally different on live testing case in which it would probably put the person’s account at high risk.

This people have been selling this EA for a while but they fail to show any live testing results we can use to confirm the backtesting they give us. Well, I have to say that this makes this expert absolutely NOT worth buying, the evidence they show us has no value since the backtesting they show us is not shown to be consistent with live testing results. Again, I would be glad to change this if they provided a 6 month live test to confirm that there is some consistency. However, I am almost sure that this is not possible due to the possibly huge role of backtesting interpolation errors on the profitability of the backtesting results.

If you would like to learn more about which strategies can be considered long term profitable, which ones can’t and how you too can start building profits with long term stable profitable trading systems please consider buying my ebook on automated trading or subscribing to my weekly newsletter to receive updates and check the live and demo accounts I am running with several expert advisors. I hope you enjoyed this article !

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