So... I stopped trading this when v3 was announced and with all the Euro chaos, haven't put it back on yet. Am still deliberating as to whether I should hold off for a while more before putting it back on... The current reference accounts don't look that attractive.
IMO : Never try to time the market - Never try to switch on and off a EA based on gut feeling or speculation.
It does appear that any EA's hidden motive is to lose our money - but the good honest ones do recover the losses and do some good to the account.
Frankly, I do not see the logic of stopping a EA after or during DD - the DD was well within normal limits seen in backtests. Infact the v2.2 backtest had DD's as deep as 1500 pips at one point. The current DD on EURUSD pair was about 600 pips.
Since the v2.2 used GU and UC pairs based on EU (I consider this a more or vendor propitiatory method) the DD reached about 1000 pips on accounts trading 3 pairs. For risk allocation of 10 I had a DD of about 26%. I guess it would have been lower on other accounts running at lower risk. i did not lower risk and continued with the same allocation right through the EA has fully recovered the losses and equity is back at mid April levels.
I did not see any problem with v2.2 - infact it was very good and I would like to run it on a separate account - Will wait for the vendor information about details on V3 and why they consider it better than v2.2
This is a long term EA - it is not a scalper or wally. It will have DD's - This could happen anytime - could happen as soon as we start the EA or at a later time. It would be impossible to say.
The best way to decide will be to sit through 1 or 2 years of visual back test - This will provide a good amount of detail on how the EA trades. It will also increase your confidence in the system. Seeing and understanding how a EA handles losing trades, seeing the EA in DD and then recovering will actually enable us to run the EA live with lesser tensions.
Of course, The above is not true for all EA's - I got hurt with FFM - loved the backtest and lived through the horror on live
. but that was before I joined this forum. EA's like phibase, BBEA, FGB have been discussed wll in this forum - they have been reviewed, checked for cheat codes, etc.
But any amount of review and analysis will not help us run the EA confidently on live accounts until we really sit through and watch the EA perform in visual backtest.
If you do not understand the system or find it too good to be true - Do not buy it. I am still following BBEA (sale is closed, but still tracking it to see if I missed a good one). The confusion on versions and varying trades between brokers is not helping and am losing interest slowly.
Trend followers are one category of EA's - I like phibase because it is different, has been trading levels very beautifully. Even when it loses it did make lot of sense... maybe because I am still predominantly a manual trader.