The best Expert Advisor

What is the best Forex Expert Advisor?

Taking into account all the years this universe of Expert Advisors has been active, the answer to the question is: your own Expert Advisor.

Apart from that, the great majority of Expert Advisors or Forex robots that I have seen throughout the time have failed. And, I am not counting on the millions of robots that “fail” in their test phase without reaching the market.

I am talking about all the “successful” robots that have been sold in the market as “money making machines”.

The truth is that they have been good money making machines for their vendors, not for the traders that buy them.

I write this because some time ago I read a thread in Forex Factory forum, where a user reckoned what a lot of people know, but not talk much about it: that the Expert Advisors he had tried had been a failure.

Expert Advisor failure

He said this:

“After a long journey through the Universe of EAs, testing probably almost 1000 and losing money on live accounts I am finally planning to devise my own expert advisor.”

I wonder why he wants to create an EA, when all his experience in that “Universe” was bad. Well, the answer is that the guy realized that those who make a living out of EAs are the vendors.

Expert Advisor vendors

Best of all, in that thread the first guy to answer, was a vendor himself. One among many that populate forex forums trying to find naïve traders. And, there are plenty of naïve traders in the World.

There are novice impressionable traders, and there are those who have failed trying their own strategies, and are desperate to find a way to make money.

There are plenty of customers for vendors of all sorts.

But not all Expert Advisors are Scams on purpose. The process of a “naïve” EA could be something like this:

  • I am a programmer or know about programming, and start working the metatrader programming systems.
  • I use some indicators and different parameters, and start doing tests with different and countless combinations.
  • After having done 20, 50, 300 or whatever tests, I find three in which the system has a good result for the last four years. Normally those “winning” systems have spectacular profits, like 700% per year and things like that. When the programmer sees it he gets scared. They think they have found the Holy Grail of the markets.
  • Like all the rush of modern life, they will not wait four of five years to test the system in real trading. They think it is good and start promoting and selling it.
  • If they are lucky and the system works for some months, there will be a lot of customers willing to buy the “200% return” system.
  • Five hundred users buy the $300 EA. The vendor makes $150.000.
  • After some time, the system starts to fail and real accounts lose money. The creator does not know what happens to his magical system. He may suspect that real conditions are not the same as simulated. Also he may perceive that market conditions may change over time. Perhaps, good EAs should be modified actively by their owners as the conditions change. But that is easier said than done.
  • The creator, after the failure, decides to suspend the system and meditate for a while (with $150.000 in the pocket).
  • If the guy has some honor he will decide not to do the same again unless he is completely sure it will work. He looks somewhere else.
  • If he has no honor, he will realize that the real business of EAs is selling “hope”. He will, then, start creating new EAs and selling them using better marketing techniques.

Are there Expert Advisors systems that work?

Probably there are, but not many and not easily to find. Those good systems generally will not promise 100% annual returns, neither use they martingales. If possible, a good Forex robot should not be a day trading system, but a swing one.

The 99,99% of money made by Expert Advisors last years was through selling the systems. Those who buy them, may make 200% in a few months, to lose 90% of it after a while.

In general, most people who have bought these systems have lost money.

 

They lose when they buy the robot, and they lose when they trade.

Best Expert Advisor Forex robot

The best Expert Advisor is, then, the one designed and sold to a lot of people. That is how you make money with EAs, although it may not be very ethical if you sell something you know it will not work.

However, I think that there is potential in automated trading, but not like most people try nowadays, doing day trading. The answer may lie in trying swing and trend automated trading.

It is easy promoting an EA that returns 500% annual profit, and that has done it for ten years of demo trading.

What is difficult is that the promise fulfils when it is actually tried in the real market.

If the system is successful in three or four years of real trading, it might be licit to offer it.

Nonetheless, a question rises: why would I sell a system that makes me win 500% per year? Why not keeping it and trade myself?

 

Thanks for reading and sharing.