LOA.EA Halted After Weak Performance in Past 6 Months

7 min read

Dear Traders,

the London Open Advanced (LOA) expert advisor (EA) will not be available anymore on our website due to its weak performance from November 2020 till now.

This article reviews why Elite CurrenSea made this decision. 

LOA.EA Results Turn for the Worse

The newly revised and updated London Open Advanced (LOA) expert advisor (EA) started trading on two live accounts from June and July 2020. The EA was originally created by Nenad Kerkez but improved by our programmer Carlos Cordero.

The LOA.EA had a decent start in July 2020 with a gain of +4.85%. The following 2 months were minor losses of about 5 to 6%. But October 2020 placed the account again into positive territory when +10.44% gains were realized.

However, since November 2020 the results have been poor. All 7 months have been negative. And 3 out of the 7 months showed losses amounting to more than -10%.

10 Years of Back-Testing Results 

The LOA.EA was back-tested for more than 10 years. Let’s compare the back-test results with the live trading results:

  • Although the back-testing results were positive in the long-term, there were certainly some weaker periods in the test as well. The weaker live results were similar to the ones from the back-testing – at least from a monthly and quarterly perspective. For instance, the year 2019 also had 7 losing months out of a total of 8 months. 
  • The maximum loss with the back-testing once showed a single monthly loss of -21.39% and -18.43%. The real account loss of -17.04% was within those boundaries and did not exceed the loss from the back-testing.
  • That said, the maximum draw-down in those 10 years of back-testing was 35%. The live trading is seeing a draw-down of almost 46%. And the maximum losing streak with the back-testing was 5 months whereas in real live trading the steak had reached 6 months.

The strong breach of the draw-down plus the bearish trajectory of the equity curve were the main reasons for removing the LOA.EA from the Elite CurrenSea website.

What’s the Root Cause of the LOA.EA Performance?

Considering the small difference between the live trading and the back-testing results, it is still an open question whether the LOA.EA is just seeing a temporary slump. Or whether the EA real live trading results are actually weaker than the ones from the back-testing.

In any case, our two main learning lessons are clear: 

  • Having a minimum of 6 months live trading results is a must before we can make any first and early conclusion about the EA’s performance.
  • Another conclusion is that long-term positive results are more difficult to obtain if there are substantial periods of weaker performance. The LOA.EA back-testing already indicated that there could be streaks of 7 to 8 months where the performance is weak. Such slower EAs are not easily traded. From now, ECS will focus on EAs that show more consistency.

Check out the live webinar here below or go directly to Elite CurrenSea’s myfxbook page. 

What’s the Next Step with LOA.EA?

Based on these circumstances, the ECS team has decided to take the following actions:

  • New traders will not be able to purchase the LOA.EA from the ECS website, effective immediately. The LOA.EA will be removed from the website.
  • Both of our LOA.EA accounts will be closed and removed from myfxbook. We will stop trading effective immediately. The LOA.EAs will be removed from myfxbook by 31 May 2021.
  • We will also remove the LOA.EA back-testing from myfxbook as per 1 June 2021.
  • LOA.EA clients will qualify for compensation from ECS (see next paragraph).

How to Receive Compensation for the LOA.EA

First of all, we thank you for your patience as ECS tries to learn and improve in the area of EAs.

The compensation is different depending on whether the trader purchased the LOA.EA or the CAMMACD system itself. Chris mentioned credit compensation in his live webinar but this idea will not work with our service providers like Mislav Nikolic. That is why we changed the offer and traders will get access to our own ecsLIVE service for free.

Here is how it works:

  • Did you buy LOA.EA? If yes, then Elite CurrenSea is offering you a full 3 months of access to ecsLIVE subscription for free. To claim your bonus, please write us an email and include the email address you used for buying LOA.EA.
  • Did you receive and use the LOA.EA as part of full CAMMACD course?  If yes, then Elite CurrenSea is offering you 1 month of access to ecsLIVE for free. To claim your bonus, please write us an email and include the email address you used for buying LOA.EA.

Secondly, we can also say that traders can see much better results with our Zeus EA for instance. 

If you are looking for a consistent EA that manages to book almost always profit on a monthly basis, then Zeus EA profit share or Zeus EA rental might be a better solution for you.

Good trading,
Elite CurrenSea

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