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It lost it's edge because MT4 brokers found out it worked, and a lot of people started using it. They easily corrected the problem by widening spreads, thus making this EA useless.
Yes, these EA's are not doing well. The dealers have increased the spread, but that's not the whole story. The character of the market during the Asian Hours has changed. I don't think dealers have enough influence to make these changes, except as part of the market. Look at the chart for EG. It is no longer flat. It is more volatile. Look at your trades. Those that lose usually do so at the end of the flat period, when EG suddenly takes off either up or down. The spread on ECN's is still about 1 to 1.6 pips, yet these EA's will lose just because of volatility. You may try to reduce the hours of trade, but the volatility spikes occur during all hours, so you reduce your gaining trades in proportion to your losing trades.
It lost it's edge because MT4 brokers found out it worked, and a lot of people started using it. They easily corrected the problem by widening spreads, thus making this EA useless.
It is more volatile because of the recession. It is now become more stable since february 2009. CHF is better right now but GBP will be once economy is back on track.