What’s The Big Deal With Expert Advisors (EAs)?
This is the million dollar question for so many traders out there looking to automate their trading systems.
At the start of my trading career, I spent countless hours looking for what I believe would be a perfect Expert Advisor. One with small draw-downs, good returns and that could make consistent profit in any market conditions. To cut this story short I had set myself for a never ending quest. The word “holy-grail” simply does not exist in the Forex world and it took me a lot of time and a large amount of wasted cash to realize this fact.
Why are we so obsessed about Automated Expert Advisors?
These are the main points why traders use EA’s:
- System is on autopilot
- No sitting in front of the PC the whole day long looking for the right set-up
- More time to relax
- Easy to install and use
- Easy to install
- No need for experience
- Improve trading system
As a trader, those are the benefits you will be exposed to having an Expert Advisor trading on auto-pilot. Those are great features indeed but not so great when you take into account the negative side of it. The fact is that more that often Expert Advisors do not deliver on their original promise leaving your trading capital in ruin.
There are thousands of automated Forex providers on the net nowadays. This number is increasing day by day and funnily enough they all seem to have insane winning rate some even with a 100% success rate (hmmm). The common sales pitches used by those providers are:
- Make a killing trading with this robot
- No losing Forex Robot that can turn $500 into $5000 in less than a month
- Make a daily $500 on autopilot
- Robot with 100% success rate turns $100 to $1000 in a month
If all these were true we would all be filthy rich by now and I wouldn’t have spent thousands of dollars on useless Expert Advisors that do not work. The reality is that most of those expert advisors are in plain English B.S. The chance of you losing money is much higher than you making money.
If you are reading this article then consider yourself as one of the lucky ones. Do not get me wrong and am definitely not bragging here, I am simply sharing with you the experience I have had, personally, over those 5 years of trading. I am one of the few who will tell you that 98%+ of the Expert Advisors available on the net simply do not work. If they did work don’t you think those major financial corporations would use those systems instead of relying on their FX traders?
However, that is not the case. Banks and major financial institutions rely solely on their human minds (traders) to make money day in and day out on the market, not on the so called Robot traders. Those major institutions understand the fact that market conditions are not always in harmony and that price is highly unpredictable.
No mathematician or engineer can outperform the market with mere Forex robots that do not take into account change in market conditions. Above all, results generated from back testing are not in no means a reliable way to assess how good a system is.
The following are some of the major points you need to clear out if you are thinking of purchasing a Forex robot:
- The back ground of the developer (make sure the developer is a successful Forex trader and not another engineer or mathematician claiming they have cracked the Forex code)
- Has the system been tested on a live account? If yes what are the monthly returns.
- How long has the system been in operation?(2+ years)
- Monthly ROI
- The risk to reward ratio.
If all the above questions are ticked then you got yourself a potential winner.
I spent a lot of money on different Expert Advisors over the many years, and it is fair to say that I lost more money than I made. I nearly gave up on all those worthless expert advisors until the day I was introduced to a product designed by a guy named Ashkan Bolour.
I knew nothing about Ashkan Bolour at this point. I researched the net for more information and learnt that he was a highly successful money manager who was well respected in the Forex world. He had featured in many trading books and had become quite an authority in the foreign exchange arena. I decided to try his product after seeing the nice monthly returns he had on his live accounts.
Well the results were quite amazing. It was not a system making 500% or even 100% return each month but it was making some very consistent profits with small draw-downs. If ever you are looking for a proven system backed by consistent profit made on live accounts, Ashkan Bolour’s system, the FXprofit Mountain is a must.
