We agree with 'henrygothie'... Many traders talk about EAs but tend to leave out some key details. To anyone here who wish to hear us out, this is something we'd like to share with you good people. Here are the key must-know details of EAs:
1) A good VPS (virtual private server) provider is required. Anyone who wants to use EAs to trade have got to use a VPS. VPS basically allows your EA robot to trade your account 24 hours a day. Use a VPS with low latency.
2) Your broker choice. Not every broker supports the usage of EAs. You must be careful with your selection of broker. One of the signs to look out for is, 'Does the broker provide 5 digit prices?' An example of a broker that supports the usage of EAs is ThinkForex. They provide you with free VPS service if you fund your account with $2,500 and above *not sure if they changed their rates
An EA's success is dependant on the price action of the broker. Our advice is to check with the creator of the EA, which broker/s works best for their product.
3) Does the EA use martingale? If it does, please be careful. You can get wiped out very quickly...
4) You must understand that EAs have settings. These settings are usually pre-set by the creators. This is the reality! The pre-set settings may work well this week but fail terribly the next. Why? The market is always changing. There are good EAs on the market, but you may not achieve the results as you were told by the fancy sales pages.
This is not because the EA is lousy or is a scam. It could just mean that the settings were not set right for the week/month. The creators are constantly adjusting their EA settings to reap the best possible results from the markets, and that's how they might be able to achieve the desired results. Whereas you might be using the same EA + with the recommended broker but still not achieve the same results. Get it?
*We end off this little post on this note...
There is nothing wrong with using an EA to trade, but please make an informed decision before allowing an EA to trade your hard-earned cash. Is it logical to allow a $100 EA to trade your $10,000 account, hoping to make a huge windfall? Stay realistic in the forex trading world. EA creators may hate us for telling you the truth.
Your friend in trading,
FX Capital City™
~ This is purely the opinion of FX Capital City and is in no way to be construed as financial advice. Please use your own discretion before taking any follow up action. We're just here to share our knowledge with you :)