Forex advisors: how to choose the best trading robot? Choosing a trading advisor for Forex!
To date, there are a large number of Forex trading advisors on the Internet, but not all of them are really worthwhile due to the numerous flaws in the trading strategy that they use to trade, and even simple errors in the code.
If you decide to work with a Forex Expert Advisor, then the tips below will help you choose an Expert Advisor that can generate a stable income.
MetaQuotes Language 4 or MQL4 is the programming language that comes with the Metatrader 4 trading platform.
This language is used to write and test Forex strategies, as well as to create computer programs that run independently on the MT4 trading platform.
To date, there are a large number of Forex trading advisors on the Internet.
Forex trading advisors are created using a programming language, and then tested in the MT 4 strategy tester.
This language is used to code the text editor. The strategy tester usually uses historical data in order to test the created Expert Advisor.
At the end of the test, the user can get acquainted with the test results, as well as draw the necessary conclusions.
The trader is given the opportunity to choose the duration of the testing period, the currency pair, the time period for this currency pair, as well as a different testing algorithm.
Many programmers will be able to easily transform your trading strategy into a Forex trading advisor that will do all the work for you.
So, what testing parameters should you pay attention to in order to choose a successful Forex trading advisor?
Let's take a look at some test results before we start trading the EA on a live account.
Profitability is one of the main test results of Forex Expert Advisors. This indicator determines the total gain in relation to the total losses.
An indicator that is greater than one will bring profit in the long run. Since the market is constantly changing, a profitability indicator of 2 is more desirable.
Maximum drawdown of the deposit
The drawdown of the deposit is the smallest loss at any time during your trading. The maximum drawdown is responsible for the maximum minimum amount of the deposit in your account at any time during the trade.
This indicator is extremely important for your Expert Advisor trading, as well as for testing, because if the value is correct, it helps to avoid a complete loss of the initial deposit (margin call).
A successful Forex Expert Advisor during testing will have no more than 20% of the maximum drawdown of the deposit.
All Expert Advisors whose maximum drawdown reaches the level from 50% to 21% are potentially dangerous for trading.
Such EAs must be properly configured to avoid margin calls. Expert Advisors with a drawdown greater than 70% should be avoided as they are too risky.
Expectation of winning
This indicator, when tested, takes into account the total profit, total loss, as well as the duration of the trade and the initial deposit.
The higher this indicator, the more profitable your Forex trading advisor. If this indicator is higher than 100 or 150, then the adviser will bring a good profit.
For testing your trading system to be effective, you need to test the EA for at least 12 months of historical data, as this period of time covers the release of major news, as well as changes in the foreign exchange market.
Prices in the Forex market will change with the release of such important news as unemployment data, etc.
During the holidays, there may also be a sharp change in prices. It is essential that your advisor is able to overcome all these important events during the year.
Maximum and average loss
It is best to analyze not winning trades, but losing trades, since this indicator is important for the margin call level. It is necessary to avoid such Forex Expert Advisors, which, when tested, showed zero or small losses.
Instead, make sure that your system incurs an average loss that does not exceed your average income. The Expert Advisor can suffer big losses, but for the entire period of time, with an average loss, you can receive a stable income.
You will find other indicators in the strategy tester, but they are all secondary. When choosing an adviser and its subsequent testing, it is necessary to pay attention to the percentage of the maximum drawdown of the deposit, as well as the profitability indicator.
If the values of these indicators are unacceptable, then for the successful operation of the Forex Expert Advisor, it is necessary to optimize it.
Now you know how to choose the right trading advisor for Forex, and I think that after reading this article you will be able to earn more and lose less.
The best in terms of (Risk-Reward) is by far this trading robot.