By Curtis N
The first thing you should know about expert advisors is that they're not all bad. In fact there are some really great performing ea's out there. (ea is abbreviated for expert advisor) However, they all range in price from $47 to $997, so it's important to know what you're getting for your money. Generally, when it comes to an expert advisor download, you get what you pay for. Generally. There are a few really good ones for under $200 that I would prefer over the expensive ones. So here are a few items to look for in choosing the right one for you. If you find this information helpful, there are some links at the bottom that will take to an actual review and fact sheet for some of the top forex expert advisor programs.
First determine what your budget is for the purchase. There are some free ea's available, but they're worthless, trust me on that. Once you determine your budget, stick to it. You'll likely come across some great sales pages that really accomplish their job, and you'll spend more than you wanted to originally. Then you'll find out that all you really bought was someone else's trading system automated and packaged for re-sale. This brings us to the second tip.
Be sure you're comfortable with the trading system that is automated. An expert advisor download is just someone else's trading style that has been built into a computer program to automate the method. Most will use multiple technical indicators and some built in risk factors to automate the system. So, for example, if you're looking for a long-term growth system, make sure the one you buy has that feature available. Some of these programs have multiple systems built in, so you'll need to make sure they have one that fits your trading style and risk aversion. I like to scalp small wins throughout the day, so I am sure that any of the expert advisor downloads that I choose to use have an available scalping setting. With this setting, I'm able to rack up 50 to 100 pips in wins with only a few pips in losses every day.
Results do mean something. Anyone that tells you not to worry about past results because the future can't be predicted is trying to sell you something with bad results. In fact these organizations probably won't even let you see their results. There are a few different ways to test the ability of any forex ea. Many of them go through back testing. You can run these tests yourself right through the Metatrader 4 platform to see how the EA would have performed under previous market conditions. These are important tests, but not the only test. Forward testing usually occurs on a demo account. When an expert advisor download is developed, the developer will perform a series of back tests, and then if those tests are passed, they'll set up a demo account and forward test it with different settings to see which ones are optimal. These tests are valuable as well. However, there is one form of testing that trumps all the others.
Live testing happens when the developer sets up a live account with his or her own money to test the EA system. They've already passed the back testing and forward testing and it's time to go live! The ultimate goal of any expert advisor download is that it earns money consistently and keeps a low drawdown. The worst thing that a system can do is blow up your account.
If you follow the advice in this article, you'll be able to separate the great expert advisors from the junk. You have a lot to gain from finding a good expert advisor download.
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