Among forex traders, the most difficult path in attaining success may be the one chosen by those who would like to make use of expert advisors. Every forex trader has to have an ultimate strategy, but to choose a reliable expert advisor is very difficult.

Forex Trading with Expert Advisors

Expert advisors are often relied upon by many traders. This is because expert advisors offer fast and convenient instant trading execution. You don't need to operate trades manually as expert advisors handle this automatically. Therefore, many traders, including beginners, depend entirely on these expert advisors.

You can easily obtain expert advisors, and there are two ways to do it: purchasing or building them yourself. Curious about how to buy or build an EA? Check out the step-by-step process below.

 

Buying a Reliable Expert Advisor 

Purchasing an expert advisor (EA) can offer traders a streamlined approach to trading in the financial markets. Here are the recommended steps to do it:

  1. Check whether they have a running record of live trading, preferably in Myfxbook, mql5, or similar independent facilities. 
  2. If there is a running record, then take a look at their development over time. How much drawdown? How much gains? How many average wins/losses per trade? In which broker do they trade? Is the record verified? and so on.
    Inexistent running records or any other kind of proof might be taken as a mark of unreliability.
  3. Next, ask about the strategy they use to build the EA. A detailed description is needed, because they may be using some things that you would feel more comfortable to stay away from, such as the highly controversial Martingale strategy.
  4. Besides that, you can envision whether the EA will suit your account specification or not if you know the strategy. It will not be funny if you buy an EA based on hedging, while your broker ruled it out.
  5. Last but not least, look for extras. What we mean by extras are additional benefits like a money-back guarantee, trial offer, maintenance, etc. These extras can be fairly attractive at a moderate amount, but take care not to forget to read the small prints and speak with the maker if you are still unsure.
  6. Clear things up before you finalize the transaction.

 

Building a Reliable Expert Advisor

Crafting a customized expert advisor allows you to tailor trading decisions to your specific preferences and market insights. This guide will walk you through the stages of creating an expert advisor:

  1. Of course, the first step is to have a tried-and-true strategy that can be built into an EA.
  2. Be aware that not all kinds of strategies can be programmed, so your choice is quite limited. But if you are used to trading using technical indicators only, then you may be quite comfortable with the available options.
  3. Besides trading strategy, you can also opt to incorporate money management and make the EA into an autotrading tool. An EA can simply provide assistance, but it can trade in your place too.
  4. Afterward, do a backtest on your expert advisor. This is extremely important because backtests enable you to check its performance and make adjustments when needed.
  5. Alternatively, you can test the EA by applying it on a demo account for some time, but this method requires more time than the backtest.
  6. Also, consider setting up an influential news filter on your expert advisor if it is aimed at auto trading. Link it to the third-party fundamental calendar, and set it to quit trading sometime before news releases.
    It will help a lot in avoiding big waves, although it does not rule out the risks of unscheduled news. Be aware that there is nothing like a 'holy grail' or 100% accuracy in trading; even the most reliable expert advisor may fail every now and then.
  7. Regular check-ups are needed in order to maintain the trading result, and the trader who wants to make use of an expert advisor also needs to be knowledgeable about forex trading itself.
    One cannot rely 100% on any system, more so a human-made one. Therefore, due consideration is necessary.

Using expert advisors may assist traders in arriving at unemotional and objective trading decisions. However, although it may be seen as simplifying trading, it is not simple at all.

 

10 Signs You Have a Reliable Expert Advisor

A reliable EA is a crucial tool for your trading activities. Here are some signs to look for:

  1. A trustworthy EA should have a clear and well-defined trading strategy. The developer should be able to explain the underlying logic of the EA's trading decisions and the indicators or parameters it relies on.
  2. A reliable EA will provide historical backtesting results that demonstrate its performance over time. 
  3.  An EA that is being actively tested in real-time (forward testing) on a demo account or with limited capital can provide more recent and relevant performance data.
  4. A reliable EA is frequently updated to adapt to changing market conditions, incorporate new features, and address any potential bugs or issues.
  5. If you buy EA from developers, they must provide comprehensive documentation that explains how to install, set up, and use the EA.
  6. Reliable EAs provide more conservative profit targets and acknowledge the inherent risks of trading. Be cautious of EAs that promise unrealistically high profits with minimal risk.
  7. A dependable EA should allow you to customize its settings to align with your risk tolerance, trading preferences, and market conditions.
  8. It is good to have an EA that demonstrates consistent performance over an extended period, rather than one that shows occasional spikes in profit followed by significant drawdowns.
  9. A good reputation and positive feedback from the trading community can also indicate the reliability of the expert advisor.
  10. If the EA developer or provider is affiliated with a regulated financial institution or adheres to industry standards, it adds an extra layer of credibility.

Trading using an EA can offer several advantages, such as automated trade execution, rapid analytical capabilities, and the elimination of emotional factors.

However, it's important to remember that profitable outcomes cannot be fully guaranteed, and risks are always present in trading. Selecting the right broker for trading with EAs is also a crucial step.