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Price: $350

Ray Scalper

Added on February 21, 2013 01:59 AM
(4 / 5)
Trading style: scalping
Currency pairs: EURUSD
Time frame: M15
Money-back guarantee: none
NFA compliance: Yes
License: 2 real and 2 demo accounts

Introduction

The Ray Scalper EA is brought to you by PhiBase.

As the name indicates, Ray Scalper is a scalping EA that works on 15 minutes time frame. The Ray scalper has certain very good features, which makes it a great EA, as compared to others.

Strategy

It uses the “backward ray tracing” algorithm to find trades and calculate the take profit target. It uses Fibonacci, exotic indicators and popular indicators to trade. Since the underlying strategy is quite solid, the EA performs well in all market condition. This can be verified through 12 years of back testing results.

It calculates the take profit, stop loss and trailing stop on the basis of the true range average. Unlike other scalpers, this one doesn’t close the trade too quick and picks up average of 30+ pips per trade. The losses are in the range of 63 pips on an average. Thus, the wins are lower than losses, although percentage of winning trades is 81%

The trade length on an average is more than 10 hours. Since it picks up to 30 pips, it makes up for a good EA to trade news information.

Is it really a scalper?

Well, a scalper trades shorter time frames and closes the trades with fewer pips profit or loss. So, although it is named as the “Ray Scalper”, this is not in any way a scalping EA. However, that does not undermine its performance.

Though the equity curve does have drawdowns, the new equity highs are captured easily. As compared to other EAs in the market, it captures bigger movements and therefore, this EA is profitable in the long run.

Features of the Ray Scalper EA

  • Works on 15 minutes time frame
  • Trades EUR/USD pair
  • Works on MT4 platform
  • Considers all signals for decision making
  • Trades are opened when the bar closes.
  • Uses a trailing stop
  • Uses anti-martingale strategy for position sizing
  • High reward/low risk ratio
  • Good risk management policy

Risk Management Strategy

The EA is designed to open one trade at a time. If a new signal is generated while one trade is open, it would close the trade or modify it. The EA will not open multiple trades. It does not use hedging, averaging or adding strategies. This is done with a view to protect the trader account and is a good risk management strategy.

When the profits accumulate, the EA will increases the trade lot size. Conversely, in the event of a loss, the EA reduces the lot size. Thus, the EA uses anti martingale to manage risk, which is a good policy to lower the risk.

Settings

The proposed setting, which is also the default setting, is termed as 4411. This setting is ideal when you are using a broker with spreads of 2 or less.

For users using home based computer, where there could be connectivity problem, the proposed setting is termed as 1144. In case of 1144 setting, the exact take profit is set. Here, it is perfectly alright even if the EA is not online continuously.

No matter what setting is chosen by the user, he will have the exact same trades opened by the EA.  The difference between the 2 settings is in the trailing stop loss and take profits. The trades placed with different settings could have varying closing points.

Back testing

When back tested on 12 years data, the EA emerged profitable during the entire period. It is commendable that although there would be different market scenarios, but still the Ray Scalper could trade profitably. According to PHI Base, the EA generates a yearly ROI of 15.65%, while the max drawdown stood at 16.48%

During this period the EA entered 3048 trades. That means the EA opens about 4 to 5 trades weekly. On a 15 minute time frame, this volume is rather low.

The only cause of concern here is extensive drawdown period the EA exhibits. While it is quite natural for the markets to turn bad and render almost all systems unprofitable, but still Ray Scalper has a lengthy drawdown period.

So for the users of the Ray Scalper EA, in order to generate long run profits, you will need to trade patiently. It is generally observed that once there is a drawdown spell, the traders lose confidence and alter the risk settings. However, this might prove deadly. Once again, it is reiterated that the EA has long run profitability and in order to remain in profits, the traders must show patience and allow the EA to the recovery phase without altering the default settings.

The win ratio is 81% and the reward to risk ratio stands at 0.29. The high reward to risk ratio may be a cause of concern since with a slight change in the market condition, the EA may give extremely poor results.

The backtests show well distributed earnings which mean that the EA trades well in almost all market condition; however, there are times when the EA took a loss or just stayed flat.

Live Performance

 

Account #1 - Alpari US Demo
Account #2 - AGEA Real
Account #3 - FxOpen Real
Account #4 - Alpari UK Demo
Account #5 - FinFx Demo (BestForexRobots.net)
Account #6 - FxOpen Demo (forex-fxtrader.com)
Account #7 - EXPIRED Demo (FxOpen)

The Good Points

The website of Ray Scalper provides extensive details about the strategy, back testing results, 2 live accounts with verified results, statistical analysis and lot more. This would help the traders take an informed decision before buying the EA.

The back testing results over a span of 12 years have been pretty much consistent.

The EA uses a strong underlying strategy based on Fibonacci and a host of other indicators that are time tested.

PhiBase have stayed away from hyping up the EA performance and instead stuck to the performance. The live accounts show an average monthly return of 3.96% and 3.34% respectively. The accounts have been running since January 2013.

PhiBase proposes to make at least one major tweak in the EA every year to improve its performance. Of course, the members will have to pay annual charge for the getting the upgraded version of the EA in the subsequent years.

The Bad Points

The Ray Scalper EA is priced at $350, which is quite high. It has no money back guarantee. So, that remains a cause of concern, although the extensive backtest show that the EA is good.

On live money account, the EA shows monthly average earning of 3.96%. That means, if you were to trade with $1000 and the EA profits consistently maintaining its current average earnings, it would take you at least a year to recover the cost of the EA.

The extensive drawdown periods is a cause of worry, however, when the market would turnaround, the EA would take you on the path of recovery.

Price

The Ray Scalper EA is priced at $350 inclusive of one year of updates. To get the Ray Scalper EA updates for the subsequent periods, members will have to pay a yearly fee of $35.

Conclusions

Generally speaking, Ray Scalper EA is a good product, with safe trading strategy and reasonable stop loss. The vendor seems to be quite honest and has provided all the possible details and analysis.

However the high price, no money back guarantee and extensive drawdown period make the Ray Scalper EA less viable as compared to competitive products like Synergy.


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