EA or Expert Advisor has been known in the trading world for a while and many of them turned out to be mere scams, but up to this day, people are still looking for the best forex EA. Actually, based from the definition, Expert Advisor is merely a program coded in MQL4 that used to control trades automatically (most of them run under MetaTrader), so you can say that all of them are having the same capabilities to manage trades.
How do they manage the trades? Like all software in the world do: executing a set of rules from its creator. In this case, the rules represent a trading system. 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 it backed up by 100% money back guarantee?
It is very important that the creators have faith in their own EA and not trying to do "sell and forget" to you. 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. Test the EA Performance on a Dummy/Practice Account
Live test is absolute necessity to check how the EA works against the current market; you don't want something that can only work in back-testing.
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 that run 24/5 to host it, you may have to rent space in a VPS. Remember that have it run in a PC that keep turned on and off will greatly reduce its performance.
Another factor to consider when testing EA in a dummy account is waiting for at least a month before judge its performance. 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 you aren't satisfy with the growth, you may want to test more aggressive settings and see how it turns out at the end of the second month. 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. If your EA has been shown good performance during two months test period, you may want to test it for another month or using mini account to see if it performs well in different market condition.
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