Hey guys,
Over the past 3-4 years I've spent a massive amount of time trading and researching heaps of EA's and I thought I'd share some of my experiences with you.
Before you consider trading an EA on a live account I recommend you run through the following checklist:
1. Does it have a verified forward test?
Most vendors offer this now, but unless it's got a completely verified and open 3rd party analytics (Myfxbook or MT4i) then don't waste your time. A screen shot doesn't mean sh#t, I want to see a full statement.
2. How does it trade?
Get an understanding of what mechanisms the EA uses to open and close trades. Then if it starts to perform poorly you can make the decision on whether it's a temporary change in the market or time to pull the pin completely.
3. Find other happy customers.
If people are making money on a system you will find plenty of reviews and comments across industry forums. Dig hard enough and you will be amazed at what you can uncover.
4. Pay attention to the website.
If it looks like the website was put together in an afternoon by a 12hr old kid then steer clear. It's very easy to put together a basic EA, stick up a website, get a month or two's positive performance (through luck normally) and start marketing through the forums and review sites. It's a typical "pump and dump" scenario. I've seen it a few times with vendors signing up to be signal providers on our copier business SimpleTrader.net. A professional company will invest in a professional website.
Feel free to help me add to the list and share any experiences you have.
Over the past 3-4 years I've spent a massive amount of time trading and researching heaps of EA's and I thought I'd share some of my experiences with you.
Before you consider trading an EA on a live account I recommend you run through the following checklist:
1. Does it have a verified forward test?
Most vendors offer this now, but unless it's got a completely verified and open 3rd party analytics (Myfxbook or MT4i) then don't waste your time. A screen shot doesn't mean sh#t, I want to see a full statement.
2. How does it trade?
Get an understanding of what mechanisms the EA uses to open and close trades. Then if it starts to perform poorly you can make the decision on whether it's a temporary change in the market or time to pull the pin completely.
3. Find other happy customers.
If people are making money on a system you will find plenty of reviews and comments across industry forums. Dig hard enough and you will be amazed at what you can uncover.
4. Pay attention to the website.
If it looks like the website was put together in an afternoon by a 12hr old kid then steer clear. It's very easy to put together a basic EA, stick up a website, get a month or two's positive performance (through luck normally) and start marketing through the forums and review sites. It's a typical "pump and dump" scenario. I've seen it a few times with vendors signing up to be signal providers on our copier business SimpleTrader.net. A professional company will invest in a professional website.
Feel free to help me add to the list and share any experiences you have.
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