Check an EA before you buy

Seven questions to put to a seller. When you get their report, NoCap Edge checks it against five things: genuine, survives costs, hidden risk, overfitted, decaying.

1. Can I see the full report file, not a screenshot?
   A screenshot can be edited or cropped. Ask for the MT4/MT5 report (HTML or Excel) and check it yourself.
   Our check: Genuine: do the figures add up?
2. Does the test use realistic spreads, commission and slippage?
   Ask what spread and fees the test assumed, and whether it was run on your broker's conditions.
   Our check: Survives costs: is it still profitable after real costs?
3. Does it use martingale, a grid, averaging down or no stop-loss?
   Ask plainly. These can look smooth for months, then lose a lot in one move.
   Our check: Hidden risk
4. How many trades, over how long, and is the profit spread out?
   A handful of lucky trades or one good year isn't an edge. Ask for the trade count and the year-by-year result.
   Our check: Not overfitted
5. What has it done recently, and on a live account, not only in a backtest?
   A strong old curve that has gone flat is a warning. Ask for live results on an account you can see.
   Our check: Not decaying
6. What was the biggest drawdown, and would it have broken a prop firm's daily or max loss rule?
   Compare it with the rules you'd trade under, using the free prop-challenge calculator.
   Our check: Hidden risk
7. What is the refund policy, and who can I ask about a result I think is wrong?
   A seller who dodges questions or refunds before you pay will not get easier after.
   Our check: Not part of the grade: a seller red flag

Education and analysis, not financial advice. We don't recommend any EA, seller or firm.

Got their report? Check it free How to get the file Prop-challenge calculator