Forex Diamond EA Review
In this Forex robot review we’re going to break down all the pros and cons of Forex Diamond EA – the Forex robot that works using three independent strategies in its trading. Follow this review to get detailed information about Forex Diamond EA.
Live performance of Forex Diamond taken from Myfxbook
There are two live trading accounts of Forex Diamond available on Myfxbook. There are different trading periods, currency pairs, and results for each of the accounts. But all the trading charts look sharp and almost do not have a straight upward trend. There are several deep stop-loses that the Forex Diamond EA has faced during its trading as well. Read a detailed analysis of each of the Forex Diamond live accounts further in the review.
As well as the live accounts the Forex Diamond EA has got a list of backtests that are supposed to show possible trading results of the system from the long-term perspective. There are 7 backtests available for Forex Diamond EA: 4 tests of GBPUSD currency pair, 1 for USDJPY, 1 for EURUSD, and 1 for USDCHF. Most of the backtests have 19-years of backtesting except for the GBPUSD currency pair with 1%, 2%, and 5% risk.
All the backtests were made on the basic MetaTrader backtester on the M15 timeframe with 90.00% accuracy which is normal for the EA that does not use scalping strategy and doesn't need the precise every tick data for its proper work.
*The backtests are taken from the developers’ website
*The subsequent analysis of the adviser is based on live analytics from the Myfxbook website. We’ll go through the pluses and minuses of the trading system as well as the profit and drawdown analysis.
Profitability and drawdown
The Forex Diamond EA has got 2 live trading accounts on Myfxbook. The most profitable of them is the “Forex Diamond REAL MONEY” account that has 84.63% of the gain. The fixed drawdown level of this account according to Myfxbook is 20.31% but there is also a floating drawdown level of 24.72% that has been fixed in March 2020 (look at the chart below).
There is one interesting fact about this particular trading account of the robot. The developer of the EA hid a part of the statistics which at the beginning of the trading was unprofitable. It is possible to see this statistic if we use the Myfxbook tool “Custom analysis” by which we can open full statistics that could be hidden by the developer. If you see an information window like the one, we provide in the following screenshot at the top of the page, you have to be aware that there is some part of the trading statistics of the account that the developer does not want you to see.
So, if we look at the full statistics of Forex Diamond it is obvious that the start of the trading was very unlucky for this Forex expert advisor. There was more than 17% loss at the very beginning of the trading as we can see in the following screenshot.
This information is important to understand because it makes a big difference in the statistics numbers of absolute gain and drawdown level of the system. This way, the Absolute gain level changes from 77.11% to 48.74%, and the drawdown level changes from 20.31% to 26.97% which is a huge difference. The following graph shows the difference mentioned.
This account of the Forex Diamond EA has the largest gain level from all three of them. Considering 24 months of live trading, and 48.74% absolute gain with the 26.97% of the highest fixed drawdown the profit to drawdown ratio is 0.08:1 which is too small to be called a profitable Forex robot.
The next available live account of the Forex Diamond EA is the one that trades on EURUSD and USDJPY currency pair. The gain level of this account is 24.07% and the drawdown level is 10.15%. This account has been live for 37 months which is more than 3 years already. More numbers of this account are available on the screenshot below.
As we can see, there is the same sharp movement of the graph with many downward movements which is displayed in the profit to drawdown ratio. The ratio looks not that good though. It is even smaller than the ratio of the previous account – 0.06:1.
The system is called to be containing 3 completely independent trading strategies in one robot which should make it more flexible to the conditions of the market. In fact, the trading activity of the Forex Diamond EA shows that the system mostly acts like some kind of non-toxic scalper that from time to time takes up to 25-30 pips.
Based on the numbers of pips taken by the robot, it is clear that mostly the system takes around 2 to 15 pips per trade which definitely describes it as a scalping EA.
These numbers are taken from the “Forex Diamond REAL MONEY” Myfxbook account of the robot. There are a fixed lot-size and take-profit level for this account which is probably part of the trading strategy.
As the developer declares, the Forex Diamond robot can use three trading strategies simultaneously or one/two of them separated. Using the first so-called “Signal strategy” the EA analyzes the market and looks for strong impulses. Once the impulse is discovered, Forex Diamond dynamically sets up the trading parameters and executes the trade.
The “Security countertrend” strategy is built in the robot to immediately adjust trading positions to explore the reversal when the market signals look like a potential reversal. It is supposed to allow traders to make a profit in a specific market condition.
And there is also an “Aggressive Countertrend Scalping” strategy which in my opinion is the main idea of this Forex robot. This is just regular high-frequency trading with spread protection to make short-term scalping trades.
As we can see from the Myfxbook statistics the short-term scalping trades are the main way of trading Forex Diamond EA. The following screenshot reflects the trades' duration trend of the robot and shows that the Forex Diamond mostly closes trades in the range from a few minutes to 11-12 hours. But the main concentration of the closed trades is located in between the 6 min – 6 hours range.
Another signal that confirms the statement about the scalping nature of this EA as the main strategy is the trading frequency statistics. The following screenshot represents the numbers of executed trades of the “REAL MONEY” trading account of the robot.
As we can see the robot made 2836 trades on the GBPUSD currency pair and 496 trades on the USDJPY currency pair since the beginning of trading which in total is 3332 trades or 138.8 trades per month.
Summarizing what’s been said about this Forex robot it is needed to be mentioned that the EA has a nicely done selling web-page and the developer opened up a lot of information about the trading of the system as well as live results and more.
On the other hand, it is obvious that the system has a hard time bringing constant reliable profit having a very small profit to drawdown ratios and a very sharp statistics movement. This system should not be called either a reliable or high-profitable automated Forex trading strategy.
Even though the EA has all the features like live trading accounts, backtests, money-back guarantee, and others, it still misses the most important – profit and constancy which is the key to success in the field of Forex robot trading.
Speaking about the price to the quality comparison of Forex Diamond EA I give it 3.5 out of 5. Even though the system has got a list of backtests, live trading accounts on Myfxbook, and many other features that make it look very attractive, the EA misses the most important – constant high profits and the minimization of losses.
As it’s been described previously, the Forex Diamond EA has got very small profitability to drawdown ratio of 0.08:1 and 0.06:1 on live trading accounts which cannot claim to have more than 2 out of 5 for this stat.
The current trading period of 24 and 37 months of live trading is more than enough for doing permanent conclusions about the destiny of this Forex robot. It has 5 out of 5 for this stat, but this still does not define it as a reliable Forex trading system rather it just gives a long trading history which should only confirm the statements articulated in this review.
The developer of Forex Diamond made sure to provide a list of backtests which show from 9 to 19 years of backtesting of the system. This is more than enough to give the Forex Diamond EA 5 out of 5 stars for this stat.
I give this Forex robot 2 out of 5 stars and I do not recommend trading with this EA straight ahead because of its unstable trading results that we can see on developers' accounts from Myfxbook. Instead, I would recommend using it on the demo account for a longer period to see if it trades stably and brings some profit. Also, I would not recommend this EA to those, who expect to get high profits since the EA shows a very low profit to drawdown ratio and the high-frequency trading of the EA does not make a difference.
At the moment of writing this review, the automated rating system of the ForexStore rated Forex Diamond EA with 5 points out of 10 which differs from the marks that I've considered after review of this Forex robot by 1 point. This is probably due to the fact that the system has got the highest marks for trading duration and the backtesting result.
I hope this helps you, traders! I wish you profitable trading and luck on the market!
- Metatrader 5 compatible
- Metatrader 4 compatible
- Dynamic trading logic
- Secure profit
- 24/7 rapid support