I am well experienced forex trader, and now my hobby is to search for a stable and profitable automated systems- Expert Advisors. I am here to help everyone, that's why i want to share my knowledge.
Day by day, i hear a lot of horror stories from forex traders, who bought EA's and lost a lot of money..
Mostly they are new comers, so that's why i started thread here 'New Traders', I want that everyone, who even just thinking about to purchase any EA, please, think twice and read my summary about truth of using EA's...
True: There are many EA's that are pure scams.
True: Algorithmic trading by definition, will cease to be an effective strategy once many other people start using it. Further, the algorithm may fail independent of that if the assumptions it is based on change.
True: A lot of people lose a lot of money using cheap, hype marketed, EA's.
False: Everything in the EA world is a scam.
False: No one makes money with an EA. For every loser in a trade there is a gainer, though he may be using a different EA or non at all.
Half Truth: Retail traders can't compete with professionals. True for a lot of reasons, but false in the sense that you shouldn't be trading with a broker that handle professional traders, only other retail traders like yourself.
So all the above being said, here's my advice:
1) If the product looks it's mass marketed, run away.
A lot of EA's vendors also here at myfxbook.com, already banned me from their discussion page... You are asking why? Simple answer, because they are worried, that i will expose their scam...
2) If sounds like an infomercial, run away.
3) If the marketing pitch revolves around how much money OTHER people are making with the EA, run away.
What does that leave:
1) EA's demonstrate a high level of technical understanding AND provide EXPLANATORY evidence describing the what, how, and why of their strategy.
2) EA's that make sense. If you don't understand the strategy of the EA, don't use it.
Last, let me point out that any EA whose strategy in part of whole is based on being 'fast' requires that you get real, professional level hosting for that application. You're not going to be 'fast' running over a broadband connection at your home, no matter how many millions of megabits you think it runs at. Throughput and latency are related but are not the same. Traders need minimal latency, not a million megabits.
Those, that heed this advice are more likely to succeed at the expense of those, that don't heed it.
Thanks for attention!
Let's get down Forex Black Market, expose fake Expert Advisors!