The Einstein Trader EA is an automated system which has performed well in recent times. That being the case we decided to take a closer look at it, and see if we can figure out how it generates the results. Here is what we found out:
The sales pitch by the developers of this system immediately feels fishy. The video which they have posted frequently mentions how you should not trust binary options trading systems (like the SignalSamurai, for example). While obviously targeting people who have been scammed, the presentation fails to provide anything to innovative. The only major thing to hear is the description of the strategy is key - a “Price action frequent scalper, with safety filters”.
In case you are not familiar with trading, scalping is a technique, which involves very short-term trades. While a day trader may take positions for a few hours (or even minutes), a scalper will usually open and close his trades within seconds. When it comes to automated scalpers, a huge emphasis must be placed on the fact they are very broker sensitive. A slightly larger spread and/or slippage or re-quoting will ruin such an EA’s chance of success.
Another thing to check is if this system is an Asian Scalper – a type of robot, which attempts to take advantage of the usually calm early part of the Asian forex session. These are even more vunrable to the trading conditions. Here are the Einstein Trader’s hours of trading:
As we can see the system mostly trades in the early European and US market sessions. While some of the risks involved with scalping are still in place, at least a portion of the broker dependence isn’t.
As far as the rest of the properties of this system go, the lot sizing appears to be very odd. While there isn’t any clear Martingale in place, it feels very random – some trades on the same pair have more than a hundred times the volume of others. Stop-losses are fairly tight and the winning trades are closed after several pips worth of movement. The average trade duration is a mere 22 seconds. We got this information from the MyFxBook account of the system, which will cover in greater details now.
There are several trading accounts, which track the performance of the Einstein Trader. We will take a look at the first one, which is being tracked on a live MyFxBook account, traded with Axiory. While it has managed to gain 1060% in three years and six months (at the time of writing of this review), we have several issues with this account. First of all, the track record is not verified. Furthermore the broker at which the account is being traded at is not exactly a company with a flawless reputation – the firm behind this brand has changed several times. These are two of the 10 signals of a fake MyFxBook account, which one does not want to see on the popular tracking service.
With all of that in mind, here is the growth for this system:
While it seems steady and not like the ones, provided by grid-based systems (which are highly dangerous), it is still a rather strange curve. The system may have been re-calibrated in the summer of 2017, as it simply takes off since а certain point. Here is a look at the drawdown chart:
As you can see, the Einstein Trader EA peaks-out around 28% drawdown. This may seem like a lot, but in the field of high risk to high reward systems is actually a pretty decent level.
The average pips per trade of the Einstein Trader is only 1 pip. This is an important factor, as it determines the expectancy for every future trade. We do not recommend dealing with systems who score under 3 pips and being careful with those who manage under 5. As an example the Minesweeper EA only has a 4.4 pips/trade expectancy, which puts it in the “caution” category.
The Einstein Trader EA is being sold for $497. This is a price for a single license, which would be linked to one MT4 account. While the developers have not announced any discounts for buying multiple copies, which is a common practice, they may be open to talks on the topic. The system also comes with a 60-day money back guarantee.
The Einstein Trader EA is an automated scalping system. As the developers have put it themselves it is a “Price action frequent scalper, with safety filters”. While the internal logic of the trading algorithm is not revealed (obviously), the system’s MyFxBook account seems to prove it is a scalper. We must reiterate the fact the system’s tracking account is not fully verified. Even if we assume these results to be true, whether or not this strategy will work out for you, will depend on the reliability of your broker. The expectancy of this system is to make 1 pip per trade, which is less than desirable.
| Broker | Country | Regulation | Platform | Min Deposit | Review |
|
US | CFTC, NFA | MT4, Web, in-house |
$50 | Review Website |
|
Cyprus | CySec, FCA | MT4, MT5, Web | $5 | Review Website |
|
Cyprus, Australia | CySec, ASIC | MT4, Web, Mobile app |
$100 | Review Website |
|
UK, Cyprus, Hong Kong | FCA, CySEC, SFC | MT4, Web, PrimeTrader |
$100 | Review Website |
|
UK, Cyprus, Australia | FCA, CySec, ASIC | MT4, MT5 | $5 | Review Website |
|
UK, Australia | FCA, ASIC | MT4, Trading Station, NinjaTrader |
$50 | Review Website |
|
UK, Cyprus, UAE, South Africa | FCA, CySEC, DFSA, FSB | MT4, MT5, FxPro Markets, cTrader |
$100 | Review Website |
|
Cyprus | CySEC | MT4, MT5, Web | $1 | Review Website |
|
Belize | IFSC | MT4, MT5 | $100 | Review Website |
|
Cyprus, South Africa | CySec, FSCA, FSC | MT4, Web | $5 | Review Website |
|
UK | FCA | MT4, AT Pro, Advantage Web |
£100 | Review Website |
|
Seychelles | FinaCom | MT4, Web | $10 | Review Website |
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