PZ Divergence Review

Sep 22, 2021 09:02 AM ET
PZ Divergence Review

PZ Divergence is based on the idea that divergences are one of the most dependable trading scenarios. This is the reason why it focuses on capitalizing on them. As such, it identifies regular and hidden divergences so as to profit from them. But is this tool worth the $299 price tag? We review the system to ascertain if this strategy is effective, and consequently decide if it is worth the money. 

PZ Divergence is the work of one Arturo Lopez Perez, the director of PZ Trading solutions. He has 8+ experience in the market and 179 products in his portfolio. Examples of other systems he has developed are PZ Turtle Trading EA, PZ Trade Pad Pro, and PZ Currency Meter. His creations have received a 3.9 rating from 589 reviews. Arturo has not told us the professionals he works with though.  

The vendor’s profile.

PZ Divergence 

Type

Semi-automatic indicator

Price

$299

Strategy

Divergence

Compatible platforms

MT4/5

Currency pairs

EURUSD, GBPUSD, USDCHF, and USDJPY

Timeframe

H4 and above

Recommended min. deposit

N/A

Recommended deposit

N/A

Leverage

1:500

Trading strategy explanation

Other characteristics of the indicator include:

  • Supports numerous oscillators.

  • Executes performance statistics.

  • Implements email, sound and visual alerts.

  • Appropriate stop-loss and take-profit levels are displayed.

  • Has customizable colors and sizes.

  • Has configurable oscillator parameters.

  • Executes trading signals based on breakouts.

  • Has ‘filter divergences by size in bars’ feature.

  • Trades easily.

True to its name, this indicator focuses on divergences. It particularly identifies and scans for habitual and hidden divergences utilizing the trader’s preferred oscillator. It executes a twist, waiting for a donchian breakout to verify the divergence prior to giving you the go ahead to engage in a trade. The outcome is a repainting indicator which the developer says provides a very reliable trading signal. 

However, it is worth noting that repainting indicators are notorious for generating false trade signals that come and go. These can, in turn, lead to catastrophic results. 

Backtest data analysis

We do not have backtest data. So, some of the following questions remain unanswered: can the indicator make and sustain steady profits in the long term? How many trades can it conduct? How do the trades perform over a prolonged period? What is the profit factor? 

Live trading data analysis

Trading results

Myfxbook Account

Real (USD), World Forex

Started

June 27, 2021

Deposit

$255.35

Balance

$322.58

Gain

62.41%

Daily

0.57%

Monthly 

24.80%

Drawdown

24.78%

Profitability

$67.23

Trading results.

This is a real USD account that is under WorldForex brokerage. Unfortunately, it has not traded since August 31, 2021. For the 2 months the account was active, it realized a profit of $67.23, which is equivalent to an absolute gain of 26.33%. The indicator made a profit of 24.80% monthly. The balance increased from $255.35 to $322.58. The peak drawdown was 24.78%. 

Trading performance.

The system closed 57 trades, the average trade length being 1 day. The win-rates were poor as it only won 63% of the long positions and 66% of the short ones. The average win was 31.18 pips whereas the average loss was -27.27 pips. 

Account’s risk of ruin.

The indicator’s ineffective trading activities put this account’s stability in danger. By the time it became inactive, the risk of ruin had increased to perilous levels. 

 Trading history.

The system applied a variety of stop losses and take-profits. It also made many significant losses. It did not trade daily and skipped trades for up to 6 days in some instances. 

Performance of currency pairs.

The indicator preferred trading with the USDJPY currency pair - 22 deals completed. Although the USDCHF had the least trades, it generated the highest profit of $33.28.

User reviews

Only one client has provided feedback on the mql5 marketplace. He says that the product is excellent. This review is not insightful as it does not touch on the specifics of the system’s performance. 

Client feedback.

Review summary

Pros

  • Has a live trading account on Myfxbook.com

  • Easy to use

Cons

  • No backtest data

  • Customer feedback is insufficient

  • Risky strategy used

PZ Divergence is not worth your money. The fact that the indicator repaints is a sign that it can potentially generate poor trading outcomes for the trader. The large drawdown and the high risk of ruin also bring this reality to light. Furthermore, the short trading history and sudden inactivity are suspicious and point to an unreliable system. 

Rating: 4/10


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