How To Recognize The Best Forex EA
Despite the facts that many EA (abbreviation of Expert Advisor) in the market today are merely scams, there are still many people who are looking for the best forex EA. The truth is an Expert Advisor is merely a software coded in MQL4 that used to control trades automatically via MT4 trading platform, thus all of them are pretty much have the same capabilities when it comes to manage trades (open position, placing stop loss, and so on).
How do they decide when to open or close positions? Like all software in the world do: executing a set of rules from its creator. These rules are what matter if you're looking for the best forex EA, but today's market is full of scammers, so you need to be very careful and do a few things:
1. Is the creator confident enough to offer 100% money back guarantee? The guarantee can indicate how much confidence does the creator has for his product; furthermore, this also show that he won't just take your money and leave. Nevertheless, you also must realize that most EA now are sold under certain marketing network that literally "force" them to offer the money back guarantee, so while the money back guarantee is a good sign, it is not a guarantee that you've got the best forex EA.
2. Open a practice account and see how well the EA works there Test the EA against real market movement is something that you can't skip as there are too many EA that can prove their performance in the backtest but fail miserably during real trades.
With the 100% money back guarantee, usually you'll have around 60 days or so to test it in a demo account. In this case, unless you have your own PC/laptop that on 24/5 to host it, you may have to rent a space in a VPS. Remember that have it run in a PC that keep turned on and off will greatly cut its performance.
Don't be rushing to measure the EA performance, watch it for at least 5 weeks before you decide anything. Based on my experience, there are EA that trade aggressively during the day (backed by scalper trading system), but there is also EA that wait patiently for higher profit opportunity. With the second type, you may have to wait for a few days before it makes its first trade.
Either way, if you see your balance grow at the end of the month, then it is a good sign. If the growth seems insignificant to you, switch to more aggressive settings and check the result when the second month ended. If your balance is not growing at all or even reduced, you know what to do.
Identifying the best forex EA is not something that can be done with one or two month testing. In case your EA really generate great result after 2 months testing, consider to continue the test or put it in a mini account and check how well it can adapt under different market condition.
Article Source: FxTradingStock.com
About the Author
Even with money-back guarantee, you may still find just too many EA to try. Check out top forex robot for a few idea on where to start. Furthermore, I suggest that you read Forex Megadroid review to find out how this EA can aid you generating steady profits in forex trading.
by: Matthew Johnson
Total views: 26
Word Count: 517
Date: Wed, 21 Jul 2010
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