Almost every EA advertisement today shows some kind of performance curve. Many use Myfxbook, some use screenshots, and some just show monthly percentages with no proof. If you do not know how to read these stats, it is easy to be impressed by a curve that is hiding very dangerous risk.
In this guide, we will walk through the main numbers on Myfxbook and similar tracking sites, and show how to connect them to real world risk and drawdown. The goal is simple: separate sustainable systems from marketing-only curves.
One more important point: high returns are not automatically “good” if they come with high volatility and deep equity drawdowns. If you want the mindset shift behind this, read our article Why Consistency Matters More Than High Returns . It explains why long-term survival is the foundation for compounding.
Looking for a multi-currency MT4 Expert Advisor built around risk control and transparency? Check out the SmartEdge EA. You can explore key capabilities on the Features page and compare options on the Pricing page.
To practice what you learn here, visit the Performance page where we publish verified statistics and monthly breakdowns.
1. The difference between gain, balance and equity
Myfxbook shows several key values on the main system page. The most important ones are:
- Gain: the account’s percentage performance since tracking started.
- Balance: the account value based on closed trades only.
- Equity: balance plus open floating profit or loss right now.
A common trap is to look only at gain and balance, while ignoring equity. Aggressive grid and martingale systems can keep closing small profits and show a smooth balance curve, while equity goes deeply negative during open baskets. Equity is where the real stress is visible.
2. Why maximum drawdown matters more than total gain
Total gain looks exciting. But professional traders ask first:
What was the worst drawdown on the way to that gain?
Myfxbook typically shows:
- Balance drawdown: based on closed trades only.
- Equity drawdown: includes open trades and often reveals the real risk.
Many aggressive EAs show equity drawdowns of 60% to 80% or more. That means at some point most of the account was floating in loss, and a slightly larger move could have wiped everything.
If you want a deeper risk framework, pair this guide with: How To Avoid EA Blowouts and MT4 EA Risk Management: Lot Size and Drawdown.
3. Time in the market: how long has the system been running?
A system that made 100% in two weeks is not automatically better than one that made 30% in a year. Short tracks can be luck or a very specific market phase.
As a baseline, look for:
- At least 6 to 12 months of continuous history (and ideally longer).
- Evidence of trading through different conditions (trends, ranges, volatility spikes).
- Monthly results that are not purely one lucky spike.
4. Hidden history, private open trades and other red flags
Myfxbook allows system owners to hide information. Sometimes it is privacy. Often it is to hide risk.
Red flags to watch:
- History is private: you cannot see individual trades or position sizing behavior.
- Open trades are private: you cannot see floating drawdowns.
- Deposits/withdrawals are hidden: you cannot see rescue deposits or resets.
If everything important is hidden, the track record loses most of its evaluation value.
5. Lot sizing, scaling and martingale patterns
Even if trade history is visible, you still need to read the position sizing logic. Watch for:
- Lot size increasing sharply after losses.
- Long series of trades in one direction with rising volume.
- Dozens of small wins followed by a few large losses that erase months of profit.
These are classic signs of martingale or uncontrolled grid behavior. The curve looks stable until market conditions change, then the risk catches up all at once.
6. Monthly returns: smooth profile vs lottery ticket
The monthly analysis tab helps you see the “personality” of an EA.
Positive signs:
- Most months are green with a few small red months.
- No single month dominates the entire track record.
- Drawdown months do not trigger extreme revenge sizing.
Warning signs:
- Many flat months and one huge month doing most of the gain.
- Unstable performance swings (very large up and down months).
- A “perfect” curve that later collapses suddenly.
7. Real vs demo, and broker quality
Demo results can be useful for early research, but they do not show real slippage, spreads, and execution delays. Prefer at least one serious real account with realistic lot sizes and a normal broker.
If you are still learning how to validate systems, read: Forex EA Backtesting — The Correct Way and How To Test an MT4 EA Safely (From Demo to Live).
8. How SmartEdge EA thinks about performance and transparency
SmartEdge EA was designed around the idea that long-term survival and steady growth matter more than one-time high gain. That means:
- Controlled drawdown as a priority.
- A multi-currency approach to diversify opportunity and reduce single-pair dependency.
- Avoiding extreme martingale behavior that looks good until it fails.
If you are deciding between a single-pair robot and a portfolio approach, read: Multi-Currency vs Single-Pair MT4 EAs .
9. Simple checklist for any Myfxbook EA you review
- Is equity drawdown reasonable compared to gain?
- Has the system traded for at least several months (ideally a year+)?
- Is history visible and are open trades visible?
- Do lot sizes grow in a controlled way or jump aggressively after losses?
- Are monthly returns stable or purely spike-driven?
- Is the account real with a normal broker and realistic deposit size?
If most answers are positive, you can move to the next stage: demo testing, then small live testing. If several answers are negative, treat the system with caution, no matter how beautiful the curve looks.