Today we'll be reviewing the Scientific Gridder expert advisor (EA) – a piece of software that aims to solve the complex task of delivering solid profits, while keeping risks under control. The Scientific Gridder is an interesting example indeed as it is a gambling bot using the grid trading method but at the same time it displays an ability to retain the drawdown low. So, we've decided to take a closer look at this EA. For the purposes of our review, we'll refer to a real account on Myfxbook, on which this automated trading strategy has been working since June 13, 2013.
As usual, we start with a look at the strategy of the bot. The Scientific Gridder trades solely with the EUR/USD pair, while looking for trend reversals. The trading is not very aggressive, with the average trade duration at about one day and the robot usually working with only one position at a time. I know what you're going to ask next – where is the gambling in this whole story? Well, fellow traders, the grid approach appears when a position starts to incur heavy losses.
You can see that after one of the trades suffered a loss, another position was open to mitigate the loss when the trend turns – and so on, the number of positions reached four. They will all be closed simultaneously in tune with a stop-loss or take-profit level. The grid is in the open prices – the difference between them is of about 40 pips. I usually shun saying nice stuff about gambling EAs but I really like the profit curve of this one. Take a look at this picture.
By the way, the gain is not that stunning – after a period of about 10 months, it's at 27%. We can say that the reading is good and is not that pretentious as those delivered by other gambling bots. Moreover, the best part about the performance of this EA is the low drawdown – it's at meager 10% after 10 months, which is a remarkable achievement by a robot that uses a gambling method for trading. The resulting return-to-drawdown ratio is not stunning at 2.7, but it is a bit higher than the 2.5 we recommend. Hence we expect some acceptable returns in exchange for what we invest.The weakest part of the Scientific Gridder to my utmost surprise is that the trading system is rather frugal, as the average pips per trade are at 2.6, which is way below the 5 pips that we look for. The system is very sensitive to the choice of brokers – that is, the size of spreads and slippage. Given that the authors of the EA do not offer it for sale as a standalone piece of software but offer you to copy the signals of a master account, slippage may be a huge issue. You can subscribe to copy the signals of a Master account for a monthly subscription fee of $29 and $87 for three months. I'd personally recommend the authors of this bot to launch it as a standalone EA – this would at least partially compensate for the low average pips per trade ratio. Excluding this, the Scientific Gridder EA is a rather good robot. Any opinions and statements in this article are strictly subjective and should not be treated as investment advice. Forexbrokerz.com and all of its authors are not affiliates of any of the discussed signal providers, expert advisors and their vendors.
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