In this post I will be reviewing the Gold Trader expert advisor (EA) fully automated forex trading robot for the MT4 trading platform. This is another forex robot developed by the team over at LeapFX, they are really churning these out! They have a vast range of other forex robots and strategies that I have reviewed, including Funnel Trader, Trade Explorer, AX Trader, DynaScalp, News Action Trader, Jet Trader Pro, Arbitron, Econ Power Trader, Automic Trader, Auto Arb, Fund Trader, Easy Money X-Ray Robot, Skilled Trader, Pattern Trader Pro, Trend Hunter Robot, The Money Tree Robot, Wave Scalper EA, Quick Scalp Trader EA, Dax Day Trader and InstantEA. You can tell from the vast number of forex products that they have available they certainly have some experience. However, many years in the forex industry has taught me that does not exactly equal results.
Here we will take a look at the Gold Trader EA which is apparently inspired by a “weird” trading signal that appears frequently. I will be covering the trading strategy that it uses, along with analysing any backtests provided and most important, verified real results. Hopefully this will help you to decide if this forex software is suitable for your own trading goals.
Gold Trader EA Trading Strategy
As the name suggest, the Gold Trade EA aims to take advantage of trading gold, an asset that is considered by many to be a safe haven when compared to other more volatile trading instruments. That being said, gold itself can still be volatile and is often seen as an asset for a long-term hold.
However, this particular Gold Trading system looks to take advantage of short-term movements based on divergence trading. Divergence refers to when the price of a currency pair moves in one direction while the trend indicator is moving in the opposite direction. With divergence, there can be positive and negative signals. If you are unsure of what divergence trading is, Investopedia have kindly worded it in layman’s terms as follows:
“Divergence is when the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator, or is moving contrary to other data. Divergence warns that the current price trend may be weakening, and in some cases may lead to the price changing direction.”
As with any trading system, I would find it beneficial to use a regulated ECN forex broker with tight spreads, low commission charges and reliable execution speeds. Not all brokers offer gold for trading so that would be worth checking as well. With so many brokers to choose from, I have conveniently compiled a list of my best forex brokers to help you quickly and easily choose a broker that meets your needs. My top broker choice for automated trading is IC Markets as they have lots of liquidity which can give you access to some of the best prices in the market.
The Gold Trader EA is limited to a few trades per day and will look to lock them in at breakeven the keep them running to try and maximise moves. I actually like this type of money management as it means we can cut losing trades short but let winners run. This can often help to ensure a favourable risk to reward ratio and means that we can save on trading costs by not needing to keep paying spreads and commissions every time we enter and exit the market. However, it can also mean that we get taken out of some trades early and may have more consecutive losses. At least one loss would not always wipe out a good run of winners.
The developer has made all of the Gold Trader settings externally available which means that you can adjust them via the inputs window when you attach this robot to the charts in your trading platform. You can always just use the default settings provided by the developer that have already been optimised but you should always check to make sure that the lot or risk size is set to a suitable level for your risk preferences as every trader is different in that respect.
Gold Trader EA Back Testing
There are no back tests on the Gold Trader EA website which is disappointing. Despite their significant limitations, provided the developers uses Birts TDS for the most accurate back testing possible in MT4, they can give some indication of how a system traded historically. Without any backtests being provided, we cannot get an idea of how the robot may have performed over the long term. I think the LeapFX team can improve greatly by adding some top-quality back tests for potential users to get a rough idea of what to expect from the expert advisor. Of course, you could always run your own backtests and develop your own bespoke settings. However, for users who are looking for an “out of the box” solution, you might want to consider another automated trading system such as the Forex Flex EA.
Gold Trader EA Live Results
If the lack of backtests was a let-down, there are no up to date verified Myfxbook accounts showing the latest Gold Trader results either. For me, without any live results to go by, we cannot really consider using this trading software because there is no way to verify how good or bad it has been performing. As with backtests, I think that the LeapFX team could certainly improve in this area. To see the latest live verified trading account performance of all forex robots please visit my best forex robots results page.
Gold Trader EA Summary
Overall, whilst the Gold Trader EA does implement the tried and tested divergence method of market analysis, there is a distinct lack of backtests and real results. Without either of these, we have no way to see how the robot has been trading in recent market conditions. The Gold Trader EA may not be a trading strategy for everybody considering it does not seem to trade very frequently and many traders would probably give up due to the lack of trading activity. It is also limited to gold which tells me that the system is not flexible. I usually find the strongest strategies can perform on multiple assets. In saying that, the robot does come with full support, instructions and a money back guarantee.
Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading! Read more about me.