Forex Steam uses steam retrace technology along with multiple other filters to trade the markets. The algorithm works only on the MT 4 platform and claims to have over 6000 clients in the marketplace. It comes with lackluster backtesting and live records which keeps the traders blind to observing its real market output. To help our readers understand the true face of the EA, we have reviewed it in our article and highlighted its potential fraud-like trading approach.
How Forex Steam works
Like other marketplace algorithms, Forex Steam uses the coded information to place trades. There are two versions of the system, i.e., normal and light. The only difference is the time frame they operate on. While the strategies are different, we do not know if there can be a change in performance as there are no statements on the topic from the developer.
Vendor transparency
The team members of the EA include Paul Demonde, Dmitri Kozlov, Julie Zhang, and Allan Brisebois. They each claim to have extensive coding, marketing, and market analysis expertise yet are afraid to share proper portfolios. There are no certificates or LinkedIn profile links available. Lack of proper vendor transparency is a common practice of scammers in the markets.
Features
The EA has the following features:
- It is 100% automated.
- The algorithm uses a magic number to control trades
- Traders can set the custom lot size
- There is a time filter
These characteristics are common with every other system sold on the web. There is nothing significant that could highlight the algorithm in our eyes.
Applied strategies
The algorithm uses trend analysis to open 1-4 trades each day. It requires a minimum of $300-$500 in balance. The author states that traders should use a lot size of 0.1, which is extremely high for an account with a value of less than $10000. This can blow up a $500 portfolio within a matter of minutes.
The Myfxbook history shows us that the EA is trading with an extremely negative risk-reward ratio of 9:1. The stop loss for each trade is 90 pips, while the take profit is only 10 pips. This causes a huge loss on the portfolio, which is eventually driven to a margin call. Furthermore, the lot size used for a €10000 account is 1.5, which is extremely high.
The developers share a pathetic image of backtesting records on the website. According to them, they are subjected to daily updates, yet we do not see any stats or trades after March 10 2022.
Forex Steam trading results
There are no live records available on the website, so we head over to Myfxbook to witness the actual performance of the EA. From there, we observe stats from May 08, 2019, till August 17, 2020. The bogus statements from the developer about a high winning rate and profitability can be contradicted easily. The portfolio of €10000 has been completely liquidated here in a total of 533 trades.
We can observe that the overall losses are high as the worst trade value of €1377.93 is higher than €377.20. The drawdown curve is constantly rising as the algorithm continues to trade.
The advanced stats show that it would only take the EA 4 trades to zero out the balance. There is a 99.9% chance of receiving a margin call.
Pricing & refund
The developer is selling their scam EA for a high asking price of $117.9. Such systems are usually available for free in the marketplace. The lack of a money-back guarantee adds fuel to the fire.
Other notes
General reviews about the algorithm are also available on Forex Peace Army. A total of 206 feedbacks from customers give it a rating of 2.925. An angry trader comments that the results on their website are fake, and the winning rate of the EA is 70% instead of 90%.
