WSSFX Gold Master EA Logo
Price: $149

WSSFX Gold Master EA

Added on December 18, 2012 02:04 AM
(3.5 / 5)
Trading style: grid
Currency pairs: GOLD
Time frame: H1
Money-back guarantee: 30-day
NFA compliance: No

The Forex Gold Master EA is in its fourth version now, with a lot of improvements as per the developers. It is a fairly recent entrant into the market, as it was released only in September 2010. It works only on one currency – gold. The developers believe that it is a very stable and solid currency in the international market and hence have focused their efforts on developing this EA.

It is a fully automatic EA focused on riding the gold bull run. Here is a detailed review of the product, so that you can make an informed choice before you invest your money in it.

 

Basics- The Key Features and the Strategy Behind It

As mentioned earlier, it is a fully automated EA and does not require any human intervention. The EA will also optimize the lot size automatically. The EA would identify the trades as well as execute it on your behalf. All you need to do is monitor the trades generated and tweak the settings to suit your style. The underlying philosophy of the EA is to buy gold whenever an uptrend signal is detected.

There is also a silver version available, but it is not highly recommended. It operates on the Metatrader 4 platform, thus offering compatibility with almost all major brokers across the world. However, due to the leverage restrictions on US brokers, it is best to use this EA on an overseas broker. The leverages offered are 1:100, 1:200 and so on up to 1:1000. It trades on the H1 timeframe and allows multiple concurrent trades in a grid format. You need to be careful about the account size and the minimum lot size traded. Due to the grid style trading, it can open a lot of open positions simultaneously and there is a risk of margin calls being triggered.

The initial versions did not have a stop loss feature, though version 4 does have the feature. It is not clear though, as to how good the stop loss feature is. Thus, the EA would work really well as long as the gold bull run lasts. However, the moment the trend changes, it is going to be troublesome. The EA does not seem to be configured to handle a pullback in gold prices. Thus this EA can be quite dangerous unless you have a really large account size and you configure the lot sizes to be really small. Otherwise, the account can get wiped out in no time.

For micro accounts with 0.01 lot size the minimum balance recommended is $5000. For a mini account with a lot size of 0.1, the recommended balance is $50000.

If you are opting for this EA, make sure that you go for the latest version – version 4. At least it is better than v3, though whether the improvements are good enough, needs to be tested over time. The real question, though, is not whether this EA performs well or not, but where do you think gold prices will move. If you expect gold prices to fall, then look out for another currency pair. Even if gold prices are going to be volatile, then you need to stay away from this EA. Just because gold has had a fantastic bull run in the past, it does not mean it is likely to continue into the future. Government policies, economic climate and end consumer demand can all be factors that can affect gold prices in the market. If you are not sure of where the gold prices are headed, then again, it is wise to keep off this EA. Opt for it only if you are really confident about the gold bull run. In that case, this can be a vehicle to tap into the opportunity and to make money. Make sure though, that you start off with a really big account size. A small initial amount, may not give you enough profits to remain excited about this EA which is essentially focused on the gold and silver (recently introduced) commodities.

Back tests

A lot of Forex EA developers attempt to tweak the back test results through a process of curve fitting. This would ensure that the results are fantastic and novice entrants are conned into buying the product. However, you have no such risks with this EA. The back tests were not all that impressive, and the back tests started only from as late as 2010 February. It did show really good trading activity for the period, but that could also be due to its grid trading strategy which initiates a lot of open positions. It also gave good profits and stable results, primarily due to the bull run in gold. However, this EA is extremely sensitive to the spread and hence you need to choose really small lot sizes, if you want to stay in the game for long.
 

Forward Tests

A live account of this gold based EA which is being tracked by the developers in the website, and which was started on January 3, 2012 with a deposit of $10000 has managed to generate profits of $33,322 till date. There have been withdrawals of $46,551 from the account and the maximum drawdown is only 14.54%. However, other tests elsewhere in review sites have shown much higher drawdowns – in the range of 40% to 50%.

A live micro account running forex gold trader v4 at myfxbook.com would give more insights into this EA. The starting balance was $300 and trading started on 31 October 2011 with a leverage of 1:500. The account was last updated in 2012 December. At that point, the statistics was not very impressive. The account had a massive drawdown of 46.06% and a modest gain of 23.46%.

 

Conclusion

Foreign exchange trading is a high risk activity and may not be the right one for the faint hearted investor. However, if you are looking for a high risk high reward opportunity, this is the right choice for you. The high leverage levels required can work in both directions, and unless you choose the right robot to assist you in making trading decisions, it can really backfire. That is where a fully automated EA such as the Forex Gold Master comes to your rescue. It helps you to trade objectively and not be swayed by emotions when there is a huge drawdown as is bound to happen. You must make full use of the demo period to understand and evaluate the system and then make an informed choice about the product.

You must also make sure that there is adequate support available, since some traders have recently reported that the product website though active, is not supported by the developers any longer. Thus, try to speak with the support team and clarify your doubts, before you go ahead with the purchase of this EA.

The price of this EA is $149 and there is a 30 day money back guarantee, provided you have traded using the EA for at least 10 trading days. The developers claim that the trading result requirement is for their internal research, but there are other EAs out there in the market who offer a clear no-questions asked refund policy.

Tags:
WSSFX, gold, silver, grid, h1

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