When we check the assorted forex forums, you nearly always invariably see a post from a newcomer asking, “How to choose a good forex EA?” Or “Which is that the most profitable forex robot?”, Within the vain hope that counting on a complete strangers judgment can save them months of trial and error and reward them with instant material resources. If solely it were that straightforward we might all be millionaires while not having to barely elevate a finger. Since we have a tendency to be firmly entrenched really we all know it does not happen that approach unless you win the lottery.

Here are a number of the characteristics to seem for or avoid after you want to slim down the listing of Forex Robots to shop for. This is often supported my very own expertise of testing and developing Metatrader EAs over the last 5 years.

1) Avoid forex EA that solely provide back tests as verification of their profit. Back tests are simulations solely against tick knowledge (price knowledge from a broker or third party sources), thus they’re not associate correct or true reflection of mercantilism in actual market conditions. Delays in trade execution and slippage will severely impact the profit of the mechanism. Another nice danger of back testing is that it’s straightforward to “curve fit” or over optimize the settings on the mechanism to suit the on the market knowledge.

To add up the rear testing argument, with the good thing about discernment, it’s quite easy to optimize associate Semitic deity to provide a profit, sadly in live mercantilism we have a tendency to cannot enjoy this luxury. This back testing isn’t an honest indicator of the long run profit of a forex mechanism.

2) Hunt for live mercantilism statements of actual real cash accounts. ie. Not demo accounts. Not solely do demo account knowledge feeds typically vary in value associated speed they additionally don’t provide a correct illustration of the speed and accuracy of trade execution, notwithstanding what your broker tells you, notwithstanding the worthiest knowledge is that the same, the trade execution can vary enough to greatly impact your profit.

2) Bear in mind, of the mercantilism conditions of your chosen broker, that is, bear in mind of any restrictions on minimum take profits and stop losses, additionally as spreads and leverage which can impact the operation of your Semitic deity. Additionally, recent NFA rules concerning hedging and inventory accounting may additionally  impact the operation of your mechanism, therefore bear in mind about this if you’re exploitation associate NFA registered broker.

4) Bear in mind, of the sort of cash management (if any) is employed on the forex mechanism. Several robots use some sort of Martingale Theory, that effectively stacks tons or doubles ton sizes once a losing trade happens. If the mechanism uses this kind of cash management, there’s an awfully real likelihood of over leverage within the event of prolonged periods of drawdown.