In the world of online foreign exchange, or forex, trading, many platforms offer expert advisors (EAs), pieces of software that help analyze and make trading decisions. Expert advisors can be programmed to perform almost any task, and there are some specifically made to be buy expert advisors, meaning they help you decide when and what to buy in your trading. With so many tasks and variations, there are a great number of EAs, so how do you know which one is right for you? There are several ways to do this, including expert advisor reviews, but here are a few questions you should ask yourself when trying to find the right EA for you.
What’s the history of the EA? Does it have a fairly good past performance or a bad one? Is it strong with only one currency pair or is it mediocre with several? Here is where expert advisor reviews really help answer these questions. Generally, it’s not good for an EA to try the same solution or formula for all currency pairs because what’s good for one isn’t good for the other.
What was the maximum drawdown within a certain period of time? Does the EA use a stop loss? A program has a good maximum drawdown if it’s below 30% during a given period. If the EA doesn’t have a stop loss and has accuracy below 80%, especially if it is a buy expert advisor, it would be very unwise to go with that program.
What kind of risks can you stand to make? Could the risks outweigh the gains? Ultimately, you decide how much of a risk you are willing to take with any trade, trading system, or expert advisor. Some risks have a very big payoff. Many risks end up losing investors a large amount of money. To minimize your risk, you could always test an EA in a demo account to see how it works and if it will do a good job. If the EA does well in the demo account for over three months and is able to sustain a fair profit with minimal losses, then it might be time to use it in a live account.
If you stick with these questions, you are likely to find an expert advisor that does fairly well. Any program with a high success rate, is good at money management, and has been thoroughly tested is a good EA to start with. Getting the Right Expert Advisor- Know How!