Pips4Idiots by Joe Simpson - Live Testing

[Simon]

The ludicrously named "Pips 4 Idiots" is a new EA that trades the EURUSD on a one minute chart. It claims it is not a scalper, and is looking for long term trades, though the evidence of the EA properties shows that this EA has a 20 pip take profit and a 500 pip stop loss as the default settings.

Pips4Idiots will be updated regularly - for a monthly fee of $4.95, you can access the latest set file, optimized for the most recent market conditions.

It is claimed that these set files will be created by an artificial intelligence network from all users' trading for the previous month, although the lack of a .dll file makes me think this may be marketing bumf rather than the reality.

We've set up a copy on our VPS and have linked it to MT4i stats. You can see how this robot is performing in real time from the link below:

Pips4Idiots Live Testing

You can visit the product website from the link below:

Pips4Idiots Website

Looking forward to hearing your thoughts on this Pips4Idiots Forum.

[Simon]

[capsmart]

I was looking the comments in forexpeacearmy and people are not happy from it. Some were able to de-compile it and found out that it is a combination of simple indicators.
Of course this should not be a reason for not using it since trading is simple after all. It is just not easy. So a combination of simple indicators might work.
What I do not like is the 500 pip stop loss. I hate so big stop losses. You could be watching a losing trade for weeks before your stop loss is hit.
Apparently the idea is we make 20 pips every time we can and if we are in the wrong direction, we wait for a come back. Since it will only trade the eur/usd it is possible recover.
But again 1 losing trade and 25 winning trades will get you to break even. Multiply this by 4 and you have 4 out of 100. Or the way around. If you have 96% of winning trades and 4% of losing trades you break even. Hmmm.

[Simon]

Hi Capsmart,

Yes, you are 100% correct regarding the stop loss. I think this EA may fair better than 96% win rate, but as with all these scalpers (I think this is actually what it is) the risk reward ratio would mean I would never let it near my account, personally speaking.

As I have said before, decompiling EAs or any other software is illegal - I mentioned in my first post that this EA hasn't got a dll file and someone with more knowledge would have spotted any bogus claims from this alone (i.e. without having to violate copyright laws).

However, it is winning so far. I've adjusted the risk as we are using MBT trading for testing this EA and they (confusingly) have a strange setup regarding lot sizes, so I've bumped it up to make it more interesting.

Just because this EA has lots of upsells and the vendors have been economical with the truth (shall we say...) doesn't mean this EA doesn't have merit.

I would never run ANY EA, even if it was made by my best friend or even ME without testing it first.

So I am sure that our testing and scrutiny will reveal the truth.

BTW, we are running the most basic version of this EA.

Simon.