In this post I will review the iProfit HFT EA. This is a fully automated forex trading system that has been developed for the MetaTrader 4 platform. MT4 is available for free from most online forex brokers. With so many brokers to choose from, I have compiled a list of my personal best forex brokers for inspiration.
The developer states that the iProfit HFT EA can be used on any broker although I would always look for the broker with the lowest spreads and commissions as this can help to save on trading costs in the long term. Furthermore, ECN brokers can have quick trade execution speeds which could help to minimise slippage and get trades executed at the best available prices with minimal delay.
iProfit HFT EA Trading Strategy
iProfit is an expert advisor (EA) powered by a self-contained, self-learning Neural Network (NN) algorithm. The developer states that the implemented trading strategy is not to try and outsmart the markets but to use a strategy followed by major HFT trading algos (high frequency trading) which make thousands of trades on smaller time frames. iProfit adapts an HFT strategy to deliver a practical automated system for retail trading accounts running the MT4 platform.
The developer goes on to suggest that most strategies depend on lagging indicators, compare to iProfit which they mention is powered by a Neural Network (NN) algorithm that attempts to predict the High/Low of future H1 bars. According to them, the iProfit EA is based on an self-learning, self-adapting algo which is very robust and practical for trading Forex pairs.
iProfit will try to predict the price range of next H1 bar based on its input of OHLC prices of past 52 hours. The NN model adapts its algo until the success rate of prediction of past few H1 bars is greater than 70% – High/Low prediction is only made available when there is a high probability of success.
While the NN model is an important part of the trading strategy, the core of iProfit is the decision making model which claims to try and mimic the mind of the day trader. While the High/Low is made available for each bar, the buy/sell/ignore decision is based on price action analysis. Multiple moving average cross overs, support/resistance and stochastics are used to present the current market situation. The moving averages period is dynamically adjusted between 4 to 20 to meet the strategy requirement. The strategy core modules are explained in the following diagram for better understanding of trade entry/exit.
iProfit trades pairs which will usually have low or negative correlation to ensure a large number of trading opportunities are made available to the system. The historical win rate is around 60% and there is a positive risk to reward ratio based on historical data. However, there can be absolutely no guarantees on how the EA will perform going forward and you should be well aware of the significant risks involved with trading online.
iProfit HFT EA Back Testing
To their credit, the iProfit HFT EA developers have provided some 99% modelling quality back tests using Dukascopy tick data in the mt4 strategy tester, over a 10+ year period. On the iProfit HFT EA website you can see individual back tests on multiple currency pairs including EURUSD, EURJPY, GBPUSD, AUDUSD & XAUUSD. There is also a portfolio of all the back tests combined. It is worth noting the back tests did not use real variable spreads, instead they used a spread of 1 which I feel is not realistic as spreads fluctuate much more than that, especially on XAUUSD. There was also a commission of $0.7 included per round lot which seem very low considering I have seen forex brokers charge a commission of $7 per round lot. All in all, back tests I would take with a pinch of salt and refer more to the myfxbook verified accounts.
iProfit HFT EA Live Results
iProfit HFT EA Summary
On the surface, the ideas behind the iProfit HFT EA seem to make sense and well thought through when compared to many other forex robots. However, in my humble opinion, it is simply not possible for the average retail trader to make use of HFT trading systems as they will most likely not have the required resources at hand that some of the big players do. HFT trading usually needs latency and prices that are not readily available to the retail market.
The drawdowns on this particular forex robot may be high for the taste of some traders. The back tests could also be improved by using variable spreads, more realistic commissions and implemented slippage.
The iProfit HFT EA includes instructions, support, updates and a money back guarantee. It has been through a few updates which shows the developer is keen to try and improve the EA where possible and keep it up to date with the ever-changing market conditions. I have conducted many forex robot reviews and there are alternative options you may consider.