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The Einstein Trader’s creators make big promises on their website. The EA’s developer claims that your deposit can earn up to 25000% profit. According to the site, the trading bot will free traders from the shackles of their jobs, debt, and poverty. The site hypes the bot’s scalping technique while repeatedly discouraging the non-proprietary binary traders out there. We perform an EA review on the Einstein Trader. Let’s analyze the tools it uses to trade and reviews from previous Einstein Trader users.
Table of Contents
What is Einstein Trader?
The Einstein Trader is a fully automated forex bot that was designed in 2012 by William Morrison. The robot was first developed as a manual trader and then automated. The developer claims to have been a disgruntled systems developer before starting the forex business. William says that in regards to forex robots, “You get what you pay for,” therefore, if the binary traders are free, then you won’t earn from them. The developer also created “Million Dollar Pips,” another EA still in the market today.
When the Million Dollar Pips was launched into the forex market, it became popular quickly because it produced excellent results on Myfxbook, but that didn’t work out for a long time. Soon the robot’s performance was tainted by the numerous trader comments that weren’t impressed by it. The Million Dollar Pips robot has a 2.42 score on Forex Peace Army, with most reviewer’s comments lying on the negative.
Einstein Trader’s developer claims that forex bots work only when traders have to pay for them. Einstein Trader is fully automated and is compatible with Metatrader 4. You purchase one Einstein Trader package that costs $497. What does the package entail?
- Full lifetime access
- A demo account and a live account of your choice
- A comprehensive user manual
- Free updates
- Unlimited customer support
- Expert recommendations
- 60-day money-back guarantee
EA Review: How does the Einstein Trader Work?
The EA is a modified frequent scalper that uses the M1 price action to ensure traders only trade on high-probability winners. The bot trades almost every day, and the creator claims not to use Martingale trading, high stop loss, grid trading, or long-term trades. He promises shorter trades with lower risks to gain profit. On average, trades on this robot last 9 seconds.
Einstein Trader supports three currency pairs; EURUSD, USDJPY, and the GBPUSD. William speaks of six forex trading accounts using his unique “Einstein formula” formulated after years of trial and error. The formula essentially combines technical indicators and analyses prices to determine when to start and stop a trade.
EA Review: Einstein Trader’s Stats and User Reactions
We have been provided with many backtests on its website as proof that the Einstein algorithm works. The backtest Einstein Trader displays uses 99% modeling quality and shows potential for exponential growth. The backtest is for the EURUSD pair and set on the M1 timeframe, between 2012 and 2016. The test shows a $711926.24 net profit after a $1000 initial deposit, which really is exponential considering the short time frame.
The maximal drawdown for the backtest stood at 4.14%, which would make this a low-risk investment. Out of the 956 total trades that this test account did, it was able to win 478 short and long positions, which translates to 57% and 67% consecutively. We have no idea whether the backtest factored in slippage, swaps or variable spreads to get these results.
Einstein Trader on Myfxbook
The statistics on Myfxbook aren’t verified, but as of 2016, they show massive profits, as evidenced by the stats below. Come 2018, and The trader starts taking huge losses, with only an average of 30% wins on both short and long trades. The bot hasn’t provided data to Myfxbook since 2018.
This account’s trader began with a $10000 deposit in February 2014, which grew $85970 in profit as of August 2018. This growth translates to 859.71% gains, with the investment earning 0.09% each day. The drawdown stood at47.20%, which is quite the opposite of what we saw during the backtest analysis. Of 2172 trades, the robot only managed to win 882, which is only 41%, which isn’t as favorable as the backtest projected.
The massive drawdown we have witnessed could result from the robot trying to recover from the massive losses this account took within the four years. The profit factor was 1.16, and the average trade length 22s. In a bid to prevent extensive losses, we believe that the robot left the trade prematurely numerous times.
When it comes to user reviews, we couldn’t find any traders who used this bot before. Remember that this bot has been in the market since 2012; why aren’t there any user reviews on it?
Final Thoughts
It’s clear that despite the hype William Morrison placed on his magic formula, the robot isn’t as magical as he’d like us to think. The whole poverty alleviation spiel throughout the video should have been the first red flag.
Their track record on Myfxbook is unverified and not up-to-date. We can’t, therefore, use that data to measure the forex bot’s success. There are so many scams in the market today, but putting down Binary Options, even though we have some successful ones in the market, was an overreach on the creator’s part.
The data on the backtest doesn’t reflect the data on a real live account. We understand that the backtests are just projections, but according to the account on Myfxbook, Einstein Trader doesn’t even come close to what the backtest projected. The robot is subpar at best. The robot records a massive drawdown, which is in no way profitable to its traders, and the profit factor isn’t appealing. There are so many less pricey, more successful robots in the market today, and you don’t have to be stuck to a non-performer.
Since William took a five-year sabbatical to create Einstein Trader, maybe he is taking one from the bot to make another? Because we can’t see the bot’s activity anywhere. We don’t recommend investing with this robot.