Forex EA Review

Hamster Scalping EA Review – Can This Robot Assist Your Short-Term Trading?

Posted by

Daniel B Crane

On October 12, 2023

0 comments

Hamster Scalping EA is an automated trading robot that uses scalping strategies to capitalize on small intraday price movements. This review provides an in-depth analysis of Hamster Scalping EA to determine if it can genuinely assist traders with short-term trading.

Introduction

Scalping is a popular short-term trading technique that involves buying and selling assets rapidly throughout the day to generate small profits per trade. Scalpers typically hold positions for seconds or minutes, rather than hours or days like other trading strategies.

The main goal is to accumulate several minor predictable gains that add up over time. To scalp successfully, traders require fast execution, discipline, and the ability to identify opportunities where the risk-reward ratio skews favorably.

Automated trading systems like Hamster Scalping EA aim to systematize scalping by using algorithms to find trades and execute them faster than human traders can. But do these EAs actually work as advertised? This review analyzes if Hamster Scalping EA can genuinely help traders scalp profitably.

Overview of Hamster Scalping EA

Hamster Scalping EA is a relatively new automated trading system launched in 2020 by a team of professional traders and software developers. It specializes in scalping and claims to use an advanced algorithm to identify profitable short-term trades automatically.

Some key features of Hamster Scalping EA include:

Works on MetaTrader 4 and MetaTrader 5 – Compatible with the two most popular forex trading platforms.
Multiple currency pairs – Trades EUR/USD, GBP/USD, USD/JPY, USD/CAD, AUD/USD, and EUR/JPY.
Fully automated – Finds trades, sets stop loss and take profit levels, and manages positions automatically.
Timeframes – Operates effectively on the 1-minute, 5-minute, and 15-minute timeframes.
Trading strategies – Uses multiple scalping strategies and technical indicators like moving averages.
Risk management – Has built-in risk management features to preserve capital.
Regular updates – The algorithm is updated regularly to enhance performance.

How Hamster Scalping EA Works

According to the developer, Hamster Scalping EA is powered by an advanced algorithm that employs multiple scalping strategies simultaneously. It uses technical indicators like moving averages, RSI, stochastic, Bollinger bands, and pending orders to identify high-probability setups.

Some key aspects of how Hamster Scalping EA works:

Monitoring price action – Analyzes price action on multiple timeframes to find trend reversals and volatility.
Entry signals – Identifies liquidity grabs, breakouts, and oversold/overbought readings as trade entry signals.
Smart order execution – Uses spread filters and slippage control for optimal order execution.
Multiple positions – Can run multiple simultaneous positions across various currency pairs.
Stop loss and take profit – Automatically sets protective stop loss and take profit levels for each trade.
Trailing stops – Trailing stops are used to lock in profits as the price moves favorably.
Fast exits – Exits losing trades quickly to prevent large losses.
Risk management – Manages risk on a per-trade basis and overall account basis.
Runs 24/7 – Trades and manages positions automatically 24 hours a day, 5 days a week.

Performance Metrics and Backtests

It’s crucial to examine the past performance data and backtesting results of any EA before purchasing. Here are the key performance metrics published by the Hamster Scalping EA team:

Returns – Average annual return of 35% since 2020 across multiple currency pairs.
Win rate – Win rate of 64% over 7+ years of backtesting data.
Drawdown – Maximum drawdown of 18% based on backtests.
Profit factor – Profit factor of 1.7, meaning the EA has generated 1.7x more profit than losses.
Trades – Makes between 5 and 15 trades per day; over 90,000 trades executed in backtests.
Backtest period – Backtested on historical data from 2015 to 2022.

These results seem impressive at first glance. However, it’s important to be skeptical of backtests since it’s easy for vendors to curve-fit EAs to past data. Live results often differ significantly from backtest results.

Some tips for assessing backtests:

Review detailed equity curves – unsmoothed and unoptimized.
Ensure an adequate backtest period of 5+ years.
Check for robustness using different market conditions.
Compare results across multiple currency pairs.

Unfortunately, Hamster Scalping EA only provides limited backtest data. More transparency regarding their strategy testing would build trust.

Live Performance Results

Backtest results are interesting but real-time live trading results reveal the most about an EA’s viability. Here are the posted live results for Hamster Scalping EA:

Accounts traded – Currently traded on 23 live accounts according to the developer.
Recent returns – One demo account shows returns of ~25% over 8 months. Returns vary across users.
Openness – InvestorsHub forum members have discussed their live profits and losses.
Major risks – Drawdowns of 30%+ reported by some users even with proper risk management.

These live results demonstrate mixed real-world performance. Returns seem very uneven, with some accounts generating consistent profits but others seeing sizable drawdowns. Many early adopters report losses, likely due to lack of experience using the EA properly.

It takes skill and fine-tuning to achieve the best results with any EA, so don’t necessarily expect amazing out-of-the-box performance. Be prepared to actively manage your risk when using Hamster Scalping EA live.

Costs, Pricing Plans, and Promotions

Hamster Scalping EA offers a few pricing options:

Monthly plan – $200 per month.
Yearly plan – $600 per year (saves $600 vs monthly pricing).
Lifetime plan – $999 one-time fee.

The EA can be used with as many accounts and trade sizes as you wish. Additional costs include broker trading commissions and Virtual Private Server (VPS) fees to run your EA 24/7.

Hamster Scalping EA occasionally offers promotions like discounted first-month pricing, cash rebates per lot traded, and extra free months added to annual plans. Sign up for their email newsletter to stay updated on special deals.

Compared to other EAs, Hamster Scalping EA is competitively priced. Just ensure you understand the total costs of automated trading before subscribing. Running an EA can generate commissions and subscription fees that eat into your profits if not accounted for properly.

Using a Forex VPS

To run Hamster Scalping EA automatically, you need a consistently connected Virtual Private Server (VPS) rather than using your personal computer. A VPS enables your EA to trade 24 hours a day from a remote cloud server.

Some VPS features that are beneficial:

Uptime – Stable connectivity with 99.9% uptime to never miss trades.
Speed – Lightning fast execution speeds under 10 ms.
Security – Encrypted connections and top-tier cybersecurity.
Support – VPS specialists that can help install and configure your EA.
Affordability– Many VPS plans cost just $20-$75 per month.

Quality VPS services optimized for forex EAs include VPSClub, BeeksFX VPS, and Forex VPS. Take advantage of free trials to test brokers and latency before committing.

Using a VPS is non-negotiable for EA trading. Without one, you will miss trades anytime your computer is turned off, disrupting your strategies. The small VPS fee is well worth it.

Selecting a Forex Broker

Choosing a reputable forex broker is key to success with Hamster Scalping EA or any other trading robots. You want a broker that provides:

Compatibility – Integrates seamlessly with popular trading platforms like MetaTrader 4 and MetaTrader 5.
Execution – Offers fast trade execution with tight spreads, ideally under 1.5 pips.
Regulation – Registered with top-tier regulators like the NFA, FCA, CySEC, or ASIC.
Security – Uses industry best practices around data encryption and cybersecurity.
Fees – Reasonable trading commissions and swaps; avoid excessive hidden fees.
Support – Responsive 24/7 customer support via phone, email, and live chat.
VPS – Some brokers like VantageFX even offer free VPS hosting for clients.

Our highest rated forex brokers for EA trading based on these criteria are IC Markets, Pepperstone, and Forex.com. Always vet brokers thoroughly before funding accounts.

Is Hamster Scalping EA Right for You?

Hamster Scalping EA is specifically designed for short-term scalping strategies and intraday trading. It likely won’t be suited for long-term investors seeking gradual position growth.

Some signs that Hamster Scalping EA may align well with your trading style:

You enjoy fast-paced short-term trading and scalping tactics.
You are an active trader and monitor charts frequently.
You understand key concepts like volatility, liquidity, order flow.
You have skills managing risks and optimizing systems.
You have a funded trading account of at least $3,000-$5,000.
You have access to a VPS and compatible brokerage.

Conversely, Hamster Scalping EA may not be the best fit if:

You prefer long-term buy-and-hold strategies.
You are brand new to forex trading.
You dislike monitoring positions constantly throughout the day.
You don’t have sufficient capital to trade safely using proper position sizing.

If the quick scalping style resonates with you, Hamster EA could potentially amplify your trading success when used prudently. But it isn’t a magic bullet on autopilot.

Pros and Cons

Here is an objective overview of some key pros and cons associated with Hamster Scalping EA based on our analysis:

Pros

Specialized for scalping strategies many traders prefer
Compatible with popular MetaTrader trading platforms
Trades multiple currency pairs for diversification
Regular algorithm updates by the development team
Hundreds of positive user reviews and testimonials
Competitively priced vs comparable EAs

Cons

No long track record – launched in 2020
Backtest limitations – unknown degree of curve fitting
Mixed live results, some users report losses
Requires active account monitoring and risk management
Additional costs for VPS and trading fees
Steep learning curve for beginners

As with any EA, expect a period of optimization, fine-tuning, and learning how to use it properly before consistency can be achieved. Patience and realistic expectations are warranted.

Frequently Asked Questions

Q: Does Hamster Scalping EA work for crypto trading?

A: No, Hamster Scalping EA only works for forex trading currently. It is not optimized for cryptocurrency markets which behave differently than forex. Most crypto exchanges also don’t support automated trading via APIs.

Q: What brokers work with Hamster Scalping EA?

A: Hamster Scalping EA is designed to work through the MetaTrader 4 and MetaTrader 5 platforms. Recommended brokers known to work well are IC Markets, Pepperstone, VantageFX, Forex.com, and Oanda.

Q: Can I run other EAs on the same account?

A: Running multiple different EAs on one account is not advisable. The algorithms may interfere with each other. It’s best to run Hamster Scalping EA alone on a dedicated trading account using a VPS service.

Q: What is the minimum account balance needed?

A: While there is no official minimum, at least $3,000-$5,000 account equity is recommended to properly size positions and manage risk. More capital means better risk management flexibility.

Q: How much can I earn realistically with Hamster Scalping EA?

A: Individual trader profitability varies greatly. With disciplined use, some achieve 20-40%+ annual returns scalping full time but expect some periods of drawdown. Don’t rely on it as primary income until consistent profits are proven.

Q: Is there a money back guarantee?

A: Yes, Hamster Scalping EA offers a 30-day money back guarantee. You must provide evidence you used it correctly following their guidance to qualify for a refund. Ensure you fully understand the requirements before purchasing.

Final Thoughts – A Scalping Tool With Potential

Our in-depth review concludes that Hamster Scalping EA is a relatively promising automated trading system for short-term scalping strategies – albeit with some risks typical of EAs. It seems reasonably priced and specifically designed to capitalize on intraday forex price action.

However, as with any EA, expect a significant learning curve mastering its use, optimizing settings, and managing risks. Ongoing fine-tuning is required to achieve long-term consistency. Patience and diligence are vital.

For traders attracted to scalping who lack the time to manually trade full time, Hamster Scalping EA merits consideration as a supplementary tool. But persistence and risk management are still imperative, so don’t blindly rely on automation.

Combine its algorithmic signals with your own analysis for best results. Overall, Hamster Scalping EA scores well in our review but approach with measured expectations. Use its cutting-edge technology prudently to steadily compound short-term profits over time.