Although it shows a high rate of return in forward testing, it is a high-risk EA.
THE MONEY TREE EA [Official Page]
| Price | LIFETIME LICENSE – $899 ONE YEAR LICENSE – $597 |
| License | 1 account per license |
| Currency pair | 15pair |
| Terminal | MT4 |
| Money back guarantee | 30 Day Money-Back Guarantee |
Live performance (forward test results) of THE MONEY TREE EA
THE MONEY TREE EA has shown very impressive results in forward testing.
However, there is a large discrepancy between the balance and equity.
This is because this EA holds the position for a long time and a large equity drawdown occurs.
This shows that this EA does not set a stop loss and performs high-risk trades.
Trading strategy of THE MONEY TREE EA
This is the explanation screen for THE MONEY TREE EA sales page.
Of these, the following notations clearly lead to user misunderstanding.
・LOW Account Exposure Risk
・LOW Stop Loss
・No Grid
The MT4 trading history chart below shows the trades made by this EA on the AUDUSD pair.
■AUDUSD 4 hours Chart White=Buy entry Red=Sell entry
This EA opens a buy position, and when the price falls, it opens two additional buy positions.
This is a method called grid trading. Therefore, the “No Grid” statement on the sales site is incorrect.
Also, in this example, the stop loss was not executed even though the price fell by about 300 pips from the initial buy position.
The expression “LOW Stop Loss” on the sales page is also misleading to users.
In the MT4 trading history chart below, this EA holds two short positions in a large uptrend.
■NZDUSD 1Hour chart White=Buy entry Red=Sell entry
Entry point and take profit
THE MONEY TREE EA opens a position in the direction of the price movement and takes profit at 10 pips.
The MT4 trading history chart below shows a situation where short positions was opened at a time when the price had fallen significantly in a short period of time, and a profit was taken at 10 pips.
■NZDUSD 30 minute chart White=Buy entry Red=Sell entry
This EA often trades continuously after winning.
Take profit 10pip is a relatively small value.
Although it is not tight, it can be classified as a scalping trade.
Reference article:Scalping EA – Must read to decide whether Risky or profitable
It should also be noted that the results of scalping EAs depend on the broker and operating environment.
However, these examples are just examples of winning trades.
As already explained, if the price moves against the initial position, it opens an additional position and continues to hold it until the total position becomes profitable.
Increase in lot size
THE MONEY TREE EA increases the lot size of additional positions.
In other words, the martingale method is used.
Reference article:Martingale EA Risks and Benefits | Is it profitable?
If a big trend market occurs, there is a risk that the additional positions that increased the lot size will be left behind and a very large equity drawdown will occur.
Trading in multiple currencies
The sales site states that it operates on 15 currency pairs.
The following currency pairs have a trading track record in forward testing.
AUDCAD,AUDCHF,AUDNZD,AUDUSD,EURAUD,EURCHF,EURGBP,EURJPY,EURNZD,EURUSD,GBPUSD,NZDCAD,NZDCHF,NZDJPY,NZDUSD,USDCAD,USDCHF,USDJPY
This EA executes grid & martingale trades on these currency pairs simultaneously.
The table below is an excerpt of trading profits.
| Open Date | Close Date | Symbol | Action | Open Price | Close Price | Commission | Swap | Pips | Profit |
| 01/05/2024 15:30 | 02/20/2024 10:36 | AUDUSD | Buy | 0.67406 | 0.65591 | -70 | -2932.01 | -181.5 | -21152.01 |
| 01/16/2024 04:00 | 02/20/2024 10:36 | AUDUSD | Buy | 0.66132 | 0.65592 | -119 | -3801.43 | -54 | -13100.43 |
| 01/05/2024 15:30 | 01/30/2024 00:03 | USDCAD | Sell | 1.33064 | 1.34066 | -70 | -946.2 | -100.2 | -8490.13 |
| 01/16/2024 04:00 | 01/30/2024 00:03 | USDCAD | Sell | 1.34732 | 1.34069 | -119 | -898.47 | 66.3 | 7389.4 |
You can see that it holds positions in AUDUSD and USDCAD at the same time.
You can also see that positions are opened on the same day and at the same time in AUDUSD and USDCAD.
It is not possible to determine whether this is a trade that takes advantage of the correlation between currency pairs.
Backtest results of THE MONEY TREE EA
This EA does not release backtest results to the public.
The reason why backtest results are not published may be because this EA trades two or more currency pairs at the same time.
If the terminal is MT4, it is impossible to backtest multiple currency pairs at the same time.
If this EA aims to reduce risk by using the correlation of currency pairs, the backtest results on MT4 will not be helpful.
However, MT5 supports backtesting in multiple currencies.
Therefore, vendors can publish backtest results on MT5.
But they haven’t done that.
Vendor of THE MONEY TREE EA
THE MONEY TREE EA is sold by LeapFx.
LeapFx sells various EAs such as Arbitron and POWER GROWTH TRADER.
However, in order to visit the EA sales page on LeapFx, you must register your email address. This is annoying and can lead to you receiving unwanted solicitation emails.
Also, be aware that vendor sales sites may contain misleading information. For example, “Low Stop Loss” or “No Grid”. In reality, this EA performs grid trading without setting a stop loss.
These notations give a good impression to users. However, misrepresentations reduce the credibility of this vendor.
Conclusion of THE MONEY TREE EA
Forward test results are excellent.
However, this EA is risky because it executes grid & martingale trades in multiple currencies.
Additionally, the sales site contains information that deceives users. Pay attention to the credibility of the vendor.
There are two types of EA usage fees: a one-year license and a lifetime license, but both are expensive.
Users should carefully judge whether they should pay the high cost to use this EA.
