Best Expert Advisor isn't a myth. There is a real story to back it up. Even more surprisingly, they may have become your counter-party to your trading positions all this time along. But then, is it better to pretend that they didn't exist or actually trying to explore them?
What Is The Best Expert Advisor?
To be honest, looking for automated trading bot with mediocre profit gains is already challenging enough. So, if your definition of Best Expert Advisor is automated trading system with super-huge return and no risk of losing at all, you may as well close this tab right now.
An actual and working model of Best Expert Advisor really does exist. Even though so, it cannot guarantee 100% win rate due to market efficiency where no one or no system can gain superior advantage over others. Therefore, our closest definition of the Best Expert Advisor is actually top performing automated trading system with sophisticated layers of infrastructure and software engineering advancements. That actual model of best Forex robot is so advanced it can capture opportunities where market inefficiencies occur for only a mere milifragment of a second.
Enter Algorithmic Trading, A New Frontier of Trading
Have you heard algorithmic trading? These relatively fledgling trading system development have been quite a buzz in finance tech advancements. What it promises to do is super-fast reaction to any market shifts that may only last under a fragment of a second. In plain words, algorithmic trading uses predefined rule sets (similar to building an Expert Advisor) that triggers buy or sell orders as soon as a defined conditions occur.
What makes this superior to conventional trading is the fact that humans can NOT react as fast as the automated trading logic gate when it comes to detecting slightest market shifts (signals, opportunities) in a matter of milliseconds. That is the underlying factor why algo trading become the Best Expert Advisor for big funded investment banks and hedge funds.
Can We Get One of Those Best Expert Advisor?
If you a retail trader, the answer is most likely "NO". Why?
The cost of maintaining that best trading robot can be astronomical as it goes beyond the standard of normal retail-level expert advisor. To facilitate that super-fast reaction, your expert advisor or your forex robot practically has to get very low latency. It's only possible if your private server is close to liquidity provider or an Exchange Geo-location. That alone can cost you thousands of US dollars per month if not more.
Second, to build best expert advisor, you'll need a team of quant researchers. They are in charge of developing the modules (AI, interfaces, backends, etc.). Of course, hiring them also add up to your total cost. Your best bet will likely be narrowed down to;
a) become an investor/client to one of those hedge funds or investment banks who deployed algorithmic trading.
b) cutting down all the possible cost to the bare minimum. Do all the research single handedly (which will cost you time and efforts).
c) make a joint venture, borrow money from the bank(s), and get some investors to gather enough capital.
Frankly, none of those options above are easily available to retail traders. You can do table flip if that pleases you. However, all those cumbersome and lofty requirements to build an actual best expert advisor really is worth the cost. One of the most successful and controversial deployer of algorithmic trading known as XTX market can even dethrone Deutsche Bank currency trading volume in 2016.
On the flip-side, you can still purchase retail version of these top performing Expert Advisor. All you need to do is to check and re-check their actual performances before deciding to purchase them.
How Does Best Expert Advisor Perform?
Different group of developers may develop different algo-trading system in accordance of their specific requirements. However, most algo-trading derives its model from High-Frequency Trading (HFT) or speed trading. HFT usually works similar to an expert advisor with scalping trading strategy.
Essentially, you instruct it to open and/or close multiple positions. In addition, it will only hold a position for under a minute or shorter. HFT can transmit over thousands or even millions of market orders (opening, closing, and position sizing) to targeted financial instruments in only a blink of an eye. Obviously, only super computer can carry out that humongous tasks.
Their trading volume is notable and thus creating a lower spread in current targeted market. It basically works like a liquidity provider (market maker), with only difference in what the owner of the system trying to achieve with it.
Even though so, even the most advanced HFT model can't guarantee 100% win rate. One of HFT company, Virtu Financial whose IPO launched in 16th April 2015 (NASDAQ:VIRT) said that their win rate is over 51%-52%, and they can still profit from it. HFT basically profits from low spread (as low as $0.01 spread) while holding a position only as long as it can surpass that low spread (plus commission). So if a position only need a fraction of a second to gain at least $0.02 or slightly more, then the position would be closed as soon as it hit that mark. Now, multiply $0.01 profit by at least a million, now you can figure how much they profit.