Pz Divergence Review: Does It Win or Lose?

PZ Divergence

PZ Divergence is one of the many FX trading indicators that are being sold on the mql5 website. Since its publication on March 21, 2018, it has been activated 100 times. It was recently updated to its current version 14.4 in May 2021. Unfortunately, this system is not that good. As we will see later in this review, PZ Divergence applies a high-risk strategy that can slowly make you lose your capital.  

What is PZ Divergence?

PZ Divergence has several features and they are: 

  • Locates regular and hidden divergences
  • Executes performance statistics
  • It is designed to run on the MT4/MT5 platform
  • Filters divergences by size in bars
  • Executes email, sound and visual alerts
  • Trading signals are implemented based on breakouts
  • Its colors and sizes are customizable
  • Oscillator parameters are configurable
  • Supports many popular oscillators
  • Shows appropriate stop-loss and take-profit levels
  • Integrates a multi-symbol and multi-timeframe scanner
  • Tends to be accurate on longer time frames
  • It is advised to trade H4 and above.

Official PZ Divergence website

The vendor presents his product in a very simple way. He just highlights what it does, the features that define it, price, and the customer’s comments. There are also several screenshots that illustrate how it functions. 

PZ Divergence was built by Arturo Lopez Perez, a self-proclaimed private investor, speculator, software engineer and founder of Point Zero Trading Solutions. He asserts that he has been creating automated trading tools for the past 10 years and has more than a hundred indicators and EAs to his name. However, we feel this info is scanty as we are still much in the dark about the credibility of his skills, contact details and professionals he teams up with and their qualifications. 

Arturo assures traders that his tools are coded well, and therefore, they can execute trades on your account safely. 

How can we use PZ Divergence?

This indicator locates and scans for usual and concealed divergences automatically utilizing your preferred oscillator. The divergences are then used to inform trading decisions. 

Pricing & refund

PZ Divergence is available at $299 and can be bought on its official website or on the mql5. This price is expensive for an indicator. Some EAs are even cheaper than this. Alternatively, you can rent it for 1 month for $49 or 3 months for $99 or 6 months for $199. 

The vendor is offering a 7-day money-back guarantee. However, we believe that this is such a short period for a trader to determine if this system is effective. A longer money-back guarantee period of up to 30 days is normally preferred.

Divergence pricing packages
Divergence pricing packages

Trading strategy

It is said that the system executes a twist. It particularly waits for a donchian breakout with the goal of confirming the divergence prior to signaling the trade. A repainting indicator that provides a trading signal is then generated. 

Backtest results are missing. This is a big disadvantage. The developer has denied the traders the chance to see the true performance of the tool’s trading strategy. A back-test report would have helped us have a clue about how the effectiveness of the approach changes in different market conditions. This way, traders can know what to prepare for. We just cannot choose to go with what the seller is saying. It is not enough. 

Current performance

Chart highlighting the trading results of PZ Divergence
Chart highlighting the trading results of PZ Divergence

The account is young as it was launched on June 27, 2021. It was deposited at $255.35, and to date, the indicator has made a mere profit of $35.15 which represents an absolute gain of 13.77%. The balance has increased to $290.50. Currently, daily and monthly profits are 0.83% and 29.70% respectively. The drawdown which is 24.78% is high and a sign of the account’s tendency to make losses. 

The trading performance of PZ Divergence
The trading performance of PZ Divergence

Within this short time period, the system has made 33 trades with 404.4 pips. The average win is 36.23 pips when the average loss is -29.71 pips. The profit factor of 1.97 is not that impressive. The win rates for long trading positions (55%) are average and hence disappointing. However, the win rate for short ones (100%) is good. The system has traded with 0.33 lots, a comfortable figure. 

Trades made from Monday to Friday displayed on the bar graph
Trades made from Monday to Friday displayed on the bar graph

Tuesday recorded the highest number of trades (12 deals).

The account’s risk of ruin
The account’s risk of ruin

The probability of losing the account is moderate. If the indicator makes 10 consecutive losses, then 10% of the account will be lost. 

Bar graph showing the account’s monthly gain from June 2021 to August 2021
Bar graph showing the account’s monthly gain from June 2021 to August 2021

The account only made profits in July. So far, it has made losses of -0.96% in August.  

The trading history of the account
The trading history of the account

It is clear that the system traded with fixed lot sizes of 0.01. Varying stop losses and take profits were used.

What customers say

There is only one customer testimonial for this indicator despite it being in the market since 2018. According to the client, this system is excellent. However, this feedback is not enough to help us ascertain if traders love this tool or not. 

Summary: is PZ Divergence a trustworthy indicator?

PZ Divergence
2.6 5 0 1
PZ Divergence has not been in the market for long. So, it would be risky to invest in it since we do not have a backtest report that can help us predict its long-term profitability rate. The big drawdown is also a concern because it demonstrates that the system’s approach is high-risk. In short, you cannot trust this product to profit you.
PZ Divergence has not been in the market for long. So, it would be risky to invest in it since we do not have a backtest report that can help us predict its long-term profitability rate. The big drawdown is also a concern because it demonstrates that the system’s approach is high-risk. In short, you cannot trust this product to profit you.
2.6 rating
2.6/5
Total Score
  • Strategy
    3.0 rating
    3/5 Neutral
  • Features
    3.0 rating
    3/5 Neutral
  • Trading results
    2.0 rating
    2/5 Bad
  • Reliability
    3.0 rating
    3/5 Neutral
  • Pricing
    2.0 rating
    2/5 Bad

Like

  • Live trading results are provided

Dislike

  • Backtest results are unavailable
  • Inadequate customer feedback
  • High drawdown
  • Short trading history
Total
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