EA Review: Pure Alpha

Today I’m looking at a Forex expert advisor focused on providing a stable scalping solution to the marketplace, Pure Alpha EA. Built to trade between the end of the New York in the beginning of the Asian sessions, the system is developed to be reliable while keeping the risk and drawdown very low. We’ve certainly seen many systems that claim these properties in the past, so it will be important that we fully analyze what they have to offer, and what type of trading results they are providing.

The robot is owned and operated by a sole proprietor, Alexander Gerlach, located in Germany. The system was originally published on October 2nd, 2017 and is still running the exact same version, without any updates. In order to get in touch with support, traders can leave a comment on the sales page, or direct message Alexander via the MQL4 marketplace.

Pure Alpha Review

In terms of the strategy, the Pure Alpha EA “is based on price action in the mathematical component using volatility.” The system will monitor current market conditions, and attempt to determine the direction of the trend before placing trades. Like most scalpers, the EA trades during the night session with the aim of making many small quick trades, in an attempt to keep the risk level low.

We are also told that the strategy includes a stoploss and take profit on every single position taken. This is common in the Forex market, and so is the fact that as a scalper they are using no martingale, no grid or no hedging strategies either. A low spread ECN broker and a low latency VPS is required.

There really isn’t a whole lot of information about the strategy, but scalping the Asian session is a very common approach, so you can assume that the methodology is quite basic. If it were not, I believe that the developer would provide us with more information elaborated on what makes them so different from other robot vendors. One aspect that I do appreciate, is that traders who purchased the expert advisor get personal support and optimized setting files developed specifically for each traders goals. This is not something I’ve seen offered in my other recent reviews of Pirate EA, Auto News Trader and FXGoodway.

Breakdown

• Type: Forex Robot
• Price: $2499
• Strategy: Asian Scalper
• Timeframe: M5 or M15
• Pairs: EURUSD, USDCHF

Pure Alpha is by far the most expensive scalping expert advisor I’ve ever come across. As the developer claims that this price is not going to change anytime soon, because she utilizes the strategy on his private accounts as part of his regular income. He believes that if it is distributed to the masses, that the strategy will be less effective. I’m not sure why that’s the case, but it’s the story that he’s putting forth.

Considering the trading results you are about to see, I do believe that this is price too high.

Trading Results

The developers are currently providing us with one Pure Alpha EA Myfxbook account. The account provided is a real trading account, that is showing a gain of just over 47% from May 12, 2017, to January 26, 2018. The issue I see with these dates, is that we are now nearing the end of March, and the robot hasn’t traded in 2 months. I’m not sure if I want to shell out $2500 for an EA that hasn’t traded in multiple months. This obviously is a concern for me.

Another concern is the fact that while the EA is obviously stable, it’s showing a daily gain of .12%, which means you would need a very large deposit in order to earn back the cost of the software. With the absolute gain being at 47.7% right now, on a $2500 deposit, I estimate it would take over a year for you to recover the cost of the EA.

So, unless you have a large deposit, I don’t see how you could justify purchasing this Forex robot.

Community Feedback

There are currently 11 reviews of the Pure Alpha EA on the MQL4 marketplace, with 10 five star reviews, and 1 one star review. All of the clients seem pretty impressed by the service up until this point, which is certainly a positive. The one negative comment isn’t written very well, so it’s very difficult to understand what he’s trying to say. When there are this many reviews, I will generally ignore the one negative client, as there’s always going to be someone who isn’t setting the system up the right way.

Conclusion

I believe that the Pure Alpha EA is a viable trading product. My only real questions come from, wanting to know more about the trading strategy and analyzing the path to profitability. As I mentioned earlier in the review, if you do not have a sizable deposit, of at least over $10,000, I believe that it would take too long for you to earn the initial cost of the software back. You may have another opinion on this, but I guess that all depends on how long you are willing to wait, and how long you believe the strategy is going to be reliable. I also want to know why the EA hasn’t been trading for the past few months before I do anything else.

Thank you for stopping by, and please leave any comments or concerns you may have below the article now.