Home > Forex > Totally random EA makes a killing

Totally random EA makes a killing

August 6th, 2009

Last week Donna of DonnaForex.com announced in her forum that she had paid a programmer to produce a very simple EA. The strategy is to randomly place buy and sell orders, without any analysis or indicators. A simple coin flip to decide direction and then just let it ride till either T/P or S/L is hit. Then it flips the coin again and open another trade, 24 hours a day. The whole thing is supposed to be a joke. The background of course is all the EAs coming out with yet anther marvelous sales pitch promising gold, Ferrari’s and God knows what. Of course I thought it was hilarious and got a version of the EA and is beta testing it.

Sound stupid right? Well, it was supposed to be a joke. But before you dismiss it, check out my stats here (EURUSD, M5, T/P 8, S/L 60): http://patrickbateman.mt4stats.com

Insane I know. I’m a lucky guy I guess. There is some substance to the concept of course because of the small T/P (in relation to the S/L) I have chosen. This lets the EA catch small, almost Brownian, motion in price and in 50% of the cases pick the right direction in a trending market. Check out Random walk theory: http://www.investopedia.com/university/concepts/concepts5.asp or http://en.wikipedia.org/wiki/Random_walk

Oh, the name of the EA is ScamBot :D

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