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Recent Posts

  1. Forex Robots and Trading Signal Software: Who has the Holy Grail?
    Friday, February 08, 2013
  2. Best Forex Robot - How to find
    Tuesday, February 05, 2013
  3. Forex Bots
    Wednesday, January 30, 2013
  4. Foreign exchange Autotrading and Expert Advisor
    Friday, January 25, 2013
  5. Different Expert Advisors – Part 1
    Friday, October 26, 2012
  6. Reliable Forex Expert Advisors – They Give Advice but do not Trade
    Tuesday, October 09, 2012
  7. How to Correctly Use a Forex Expert Advisor
    Tuesday, October 09, 2012
  8. Top Robots
    Friday, February 17, 2012
  9. Expert Advisor performance expectancy (part 4)
    Sunday, February 05, 2012
  10. Choosing a Metatrader Expert Advisor (part 3)
    Monday, January 30, 2012

Recent Comments

  1. Kotliarov Aleksandr on Reliable Forex Expert Advisors – They Give Advice but do not Trade
    2/14/2013
  2. Kotliarov Aleksandr on Reliable Forex Expert Advisors – They Give Advice but do not Trade
    2/14/2013
  3. Kotliarov Aleksandr on Top Robots
    2/14/2013
  4. Mikki on Foreign exchange Autotrading and Expert Advisor
    2/14/2013
  5. Darren Sammy on Choosing a Metatrader Expert Advisor (part 3)
    2/14/2013
  6. Denesh Ramdin on Choosing a Metatrader Expert Advisor (part 3)
    2/14/2013
  7. Marlon Samuels on Expert Advisor performance expectancy (part 4)
    2/14/2013
  8. George Dockrell on Expert Advisor performance expectancy (part 4)
    2/14/2013
  9. David Odhiambo on Top Robots
    2/14/2013
  10. Collins on Top Robots
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Expert Advisors for MT4& MT5 - Professional Advices

Forex Robots and Trading Signal Software: Who has the Holy Grail?


We do not understand exactly what use was made from the Holy Grail, if it had actually ever before existed. Nowadays, maybe some forex robotics and trading signal software hold the crucial! Nonetheless, if the Knights of the Round Table obtained any benefit from any association with that fabulous product, history does not offer a great deal of information on the nature of the perks. It appears the poets and the poets of the Middle ages period were the best recipients of the Grail legend, selling their tales at the courts and guaranteeing a complete tummy at the same time, if not even more. The practice is alive even today, with "Holy Blood, Holy Grail", the "Da Vinci Code" all gaining their share of the revenues from the breeding of this old, suspicious, yet very amusing legend.

The currency trading industry has its very own share of these poets and poets, each informing the exact same tale from a various angle, decorating it with amazing and brand-new specifics on the inconceivable perks, the unequaled gains that could attain when he is in possession of the Holy Grail, the Forex Code, the Universal Key of Trading, the very best Automated System in History. Times modification nonetheless, and the blood of Christ not has the exact same effective effect on the minds of followers as it had in the past. Nowadays, the clinically minded, however taken in person will find the Holy Grail in some kind of mathematical formula, a numerical method, some technical device that will expose the keys of rewarding trading to the whole world.
Forex Robots

Exactly what is a forex robotic? This is a kind of program established by some high-school informed specific, which purports to be able to remove the human aspect from trading completely. Because programs, API's, do not react mentally to market advancements, we're informed that they have a clear benefit over the human trader who is constrained by his natural personality to yell, weep, make fun of sharp turns in the market. In this period of automation, the supporters of computerized trading propose that we are fools to draw charts by hand and to examine every weave of the marketplace with eyes glued to the screen, specifically when the computer system could be scheduled to do all these in our location and to do so with an effectiveness that is impossible to match for a human. Because everybody highlights the relevance of discipline throughout trading choices, of the essential function of strong guidelines which are followed with punctuality and consistency, the developers of these programs send that there is no much better option than leaving all the functional elements of this job to an automated program.

In order to develop the credibility of their cases and to show the supposed adeptness of the robotic, the homeowners of these interests will couple their sales letters with a big record of back checking information that reveals the irrefutable power of computerized trading-- in hindsight. Huge revenues with little drawdown, constant gains over numerous trades all persuade unskilled traders that the Holy Grail is within reach lastly. Exactly how merry everybody would be if just it were feasible that Percival and Woman Guinevere were right here! However we will need to compete ourselves with the incredible revenues we'll make while using our brand-new robotic, which we purchased for about $ 500.

However will we actually make those wonderful revenues or are we simply helping to fill the tummy of the poet for the home entertainment worth? Exactly what does a forex robotic or a computerized trading program truly do? It has to initially develop some guidelines for the trade which will be in the type of some technical signs or cost patterns as assessed by the pc. Then it needs to use these guidelines for benefiting from market occasions, as signals are produced throughout the trading day, and into the future. Exactly what does the back screening show? The program would have signed up revenues if the guidelines were used in the past. Exactly what must the program do? It should make revenues for us in the future since historic revenues could make us smile, however they will not include a penny in our wallets-- unless we're selling a forex robotic.

Now, if the program developed possible success in the past, why cannot we anticipate the exact same result in be duplicated in the future? Because the charts look extremely comparable on the whole, why cannot we anticipate those back screening lead to be changed to future revenues? There's this little waiver at the bottom of every genuine forex broker's web page, which mentions that previous efficiency does not ensure future outcomes. Exactly what does that imply? It implies that monetary markets are disorderly procedures where the prevailing guidelines alter all the time according to characteristics which are not well comprehended yet. In shorts, the technical guidelines that stand today will not stand tomorrow. The technical approaches that produce revenues today will refrain so in the future, since the mathematical procedures that specify the cost action alter all the time. Many certainly, there's no solitary mathematical procedure or formula that could be put on produce constant revenues in the market. All that the back screening outcomes show is that at some point in the past, there were technical approaches using which can be rewarding for the trader. However we need to know exactly what the effective technical approach will be tomorrow, not two days back, as we do not possess a time device that will provide us back in time to trade the marketplaces with the hindsight we have.

And if you have any trouble in accepting the above declaration, consider your very own experiences in the forex market: The amount of times have you seen that a technical indicator, a trading approach, a mix of technical devices that worked 5 mins back, is not successful simply a brief while later on? Now would not you make fun of yourself if you had taken the mix that had worked 5 mins back and stated it to be a widely legitimate device for perpetuity? We understand for sure that despite exactly how effective our technical setup was 5 mins back, it will fail routinely in the future since of the random nature of cost motions.

However some will negate us and state:.

"The back screening outcomes are made use of to select the trading systems that were regularly effective over a much longer time than 5 mins. You're streamlining the techniques and devices of the developers of these systems grossly, and putting yourself in an absurd circumstance by the simpleness of your argument.".

To that we will react by reminding the traders of the fractal nature of the cost graphics. In shorts, the rate action has an unusual propensity to duplicate itself with really subtle modifications over an extended period of time. The patterns noted in a five-minute chart could still be determined in a five-year chart. The randomness, unpredictability of the rate buildups are no various on five-year long charts than they are on 5 min charts and the length of the back screening duration is of really little effect as an outcome. If a trading robotic could be revealed to trade effectively on 5 min charts just on a constant basis, that would be an effective pointer of its ultimate usefulness to numerous even more timespan too. There has actually never ever been such a forex robotic and if there will be one in the future, it will certainly utilize extremely various techniques for trading the marketplaces.

We recommend you to buy forex robots only with real account proof for long term period.

For example Forex Robot TFOT

Best Forex Robot - How to find

It's something to obtain forex robot and it is completely the various other world of concern of discovering the very best forex robot. Exactly what certifies a forex robot as one of the very best forex robotics and ways to look for the very best forex robot? Review the short article for the responses.

Exactly what certifies a forex robot as one of the very best forex robot?


In order to comprehend exactly what certifies as the very best forex robot, we most likely have to figure out exactly what is a forex robot initially. A forex robot is a computerized forex system that is installable on your forex trading platform. It resembles extension software to your existing forex platform. This robot will do anything as long as it's informed to do so. It could remain 24-hour awake, await the signals to appear and get in the trades with no doubt.

As a result you could most likely see that the very best forex robot need to numerous functions that aredistinguishable from the ordinary ones.

1. The very best forex robotics should have a great security to run over your existing platform in order not to collapse while trading forex.

2. Because the forex robot is a piece of software, its programs is the trick. In addition to the security, the very best forex robot have efficient trading signals set. For instance, a forex robot that utilizes RSI (Loved one Strength Indication) to create automated forex signals could be among the very best forex robot, because that's most frequently seen forex sign on any trading platform.

The best ways to discover the very best forex robot in the market?

1. Do background check to find a team of robotics prior to choosing the very best forex robot.

Check out the evaluations uploaded on the online forum about the very best forex robot in the market. However do not decide simply yet. You wish to circle out some robotics for additional screening.

2. Do back screening on your own to choose whether the forex robot are the very best forex robot rather of completely purchasing the designer's words.

You need to really cautious about the back examination outcomes turned over by the robot designers. There are a great deal of methods to make untrue declaration appear like genuine ones. The method to fracture it is doing the back screening on your own. You could merely review numerous timeframes utilizing the Forex historic information to check whether robotic is as lucrative as it declares. It is does, then you have actually finished the 2nd action in finding the very best forex robots.

3. Running the prospect on the trial consider the last winner of certifying the very best forex robots

The very best forex robot need to run effectively both utilizing the actual time information and historic information. If they can, then congratulations, you have actually discovered your finest forex robots.

Our recommendations

For my opinion the best forex robot is TFOT http://iticsoftware.com/tfot6/


Forex Bots

This is a short consider the various sorts of fx bots out there ... the great, the bad and the unsightly.

The movie that passes the exact same name will constantly stay among the perpetuity Western greats, however actually, we get to see the exact same things play out in today's monetary markets. The entrance of foreign exchange robotics altered the landscape of foreign exchange trading as we understand it. With the fx bots have actually come some trading benefits, however we have actually additionally seen a brand name brand-new measurement contributed to the word FRAUD.

Let us see in what fx bots provide the excellent, the bad and the unsightly side of trading.

1) Fx Robots: The Great

The daily life of the typical working course person is a really hectic, busy one. Many individuals work unsatisfying 9-5 tasks, and do not make as much cash as they would such as. Then comes the foreign exchange market, with the guarantee of providing individuals the possibility to generate income from the click of a mouse; actually. However I am not too sure your superiors will like to see you clicking away and examining foreign exchange charts when you should be doing something you are being for. So trading below is a little an issue. However if you have a foreign exchange robotic, you can trigger it on your COMPUTER in the house, or doing this on your mobile gadgets, leaving you to do your day task unrestricted and with optimal concentration. You could constantly return house to inspect your positions, which ought to be excellent if you are making use of an excellent robotic. This is simply among the great facets about fx bots.

2) Fx Bots: The Bad

While going to drop off your children in school on your means to work, you drive on gladly, even envisioning exactly what your revenues for the day would appear like. It is then that it strikes you: in your rush, you forgot to inspect the foreign exchange calendar prior to connecting the fx bot to your charts prior to leaving house. Regrettably, your fx robotic could not exit trades when information launches, and you are uncertain that any contrary information launch will not blow off any revenues your fx bot could have made. This is simply among the bad facets of utilizing fx bots. They could not trade the information and they could not exit trades simply when information products. If you forget to examine on your foreign exchange calendar, this is a major disadvantage.

3) Fx Bots: The Ugly

Exactly what could be even worse than utilizing fx bots that can not trade beneficially, do not even come close to the radiant outcomes that the sales supplier pitched, or do not even comply with any guidelines of danger management, opening positions at over-exposing and random your capital to the marketplace? 90 % of foreign exchange robotics on sale on the web do precisely all this. It misbehaves that numerous of such fx bots cost outrageous amounts of cash, however to pay that much and still suffer the injury of a margin call since of bad trades triggered by the fraud item? That is one bitter tablet a lot of and quickly suits the unsightly side of foreign exchange robotics.

Fx bots on sale online present you with the excellent, the bad and the awful. A little due diligence from on-line foreign exchange testimonial online forums in addition to even going the additional mile to obtain a developer to code a tip that works will get you the excellent, while dispeling the bad and the awful sides really away from your trading account.

Foreign exchange Autotrading and Expert Advisor

In early days, Foreign exchange traders made use of to invest nights and days establishing trading methods that would most effectively do in Foreign exchange trading. Those in Foreign exchange trading comprehend how human feelings could play around in the industry. For successive days it could be all feelings and losses run out, yet in various other days it could be consistent revenues and one could be swayed away by greed to trade even more cash. Trading on fx market needs trading techniques that do regularly as one could sustain hefty losses. The rate at which the Foreign exchange market is expanding has numerous effects, some much better than others. On the one hand, there are never-ending resources online for coming to be a specialist and discovering on the biggest most profitable market.

With the development of on-line trading, numerous internet-based business rely on Foreign exchange autotrading systems such as Foreign exchange Specialist Advisors that offer a fast method for people to offer and purchase on the Foreign exchange market. Foreign exchange autotrading is a trading method where purchase and sell orders are put instantly based upon a hidden Foreign exchange Expert Advisor system, additionally called Foreign exchange Robotic. When a specific set of requirements is fulfilled, the purchase or offer orders are submitted out to be performed in the market. Autotrading is a change in the on-line trading market. Prior to, you should purchase or offer monetary instruments. Now you could select from a large variety of methods, and utilize methods which did finest in your selected time period.

Exactly what is Foreign exchange Professional Advisor/Forex Robot?


Foreign exchange Expert Advisor, additionally called Foreign exchange Robotic, is a smart program that can carrying out in the terminal any action by following the directions of a trader without trader's direct participation. All jobs are executed instantly or mechanically, which is why the Foreign exchange Specialist Advisors could be described as Automated Trading Equipment (ATS) or Mechanical Trading Equipment (MTS). A Foreign exchange Expert Advisor can sending out applications to a broker without any intervention on the part of the trader. Essentially, a Foreign exchange Expert Advisor such as TFOT Expert Advisor is set up into an existing foreign exchange online trading platform, which is linked to the server broker where settings could be readjusted and the consultant could start trading according to the preset technique.

Why do one require Foreign exchange Professional Advisor/Forex Robot?


A computerized trading system could create even more trades per market than a human trader could manage and could duplicate its actions throughout numerous markets and timeframes. Such systems are additionally untouched by the mental swings that human traders are victim to in Foreign exchange trading market. Foreign exchange Specialist Advisors could execute technical analysis and choose when to open or close trades; they are made in such a means that, they are constantly "worried" in keeping the trader on the gaining side.
Unlike Foreign exchange brokers, who sometimes revenue from your loss, Foreign exchange Robots do not work against the trader and in addition, Foreign exchange Robots such as TFOT Expert Advisor from Morpheus FX Solutions could trade 24 hours a day even without your guidance. Foreign exchange Robots could have significant perks to Foreign exchange traders and more so to unskilled or brand-new Foreign exchange traders. Unlike previously, today you do not should be a professional in Foreign exchange market, understand ways to review Foreign exchange charts or exactly what a particular currency will finish the marketplace, with Foreign exchange Expert Advisor you could still come to be a really effective Foreign exchange trader.

Where can one get a Foreign exchange Professional Advisor/Forex Robot?


If you would such as to purchase a Foreign exchange Expert Advisor or a Foreign exchange Robotic, one important and crucial suggestion in guaranteeing the Foreign exchange Robotic is genuine and will bring you revenues and not losses, is to check out evaluations about it. Various other ideas consist of whether the homeowner do provide cost-free trials, trials and online forums on the Foreign exchange Robotic. One Foreign exchange Robotic that I have actually discovered to pass all these checks is TFOT Expert Advisor from iticsoftware.com/tfot6

TFOT Expert Advisor is a Non-Martingale Scalper which trades 24/5 on currency pair EURUSD. The Foreign exchange Robotic uses interior indication Logic and a Complicated Algorithm to properly put trades with a high degree of precision. TFOT Expert Advisor uses interior finance and multi-layer neural network filter to safeguard accounts in high volatility.

Different Expert Advisors – Part 1

Lock&Scalping

Mechanical trading system Lock&Scalping was created as a night best scalping expert advisor for EURUSD, and then different blocks, modules and extensions were added: joint trade of several robots in portfolio mode, lock-unlock methods, partial close and so on. Several different forex indicators were developed for Lock&Scalping, including ХМА. Advisors are built on the basis of module scheme and user functions. There are a lot of comments, so you can look through each best forex robot list and use it as an educational material. Special thanks to KIMIV – his trading functions have become standard for mql4 long time ago and are widely represented here.

Breakdowning martingail

Forex expert advisor Breakdowning martingail is a MTS that apprise money management on the basis of Martingale method. The special feature of this forex robot is that it increases unprofitable hand considering that price would continue its movement and wouldn’t rebound from level, i.e. it is a breakout variant. It is much more stable and resistant than other variants.

Here are several comments:

  • LogariphmicMM (at turned on MM) enables money management, when lot size increases together with increase of the deposit. Lot size increases slower than the deposit itself, i.e. deposit load decreases. You only need to make a decision about Riskfactor;
  • ProfitPercent determines the necessary lot size in percents from the deposit, as long as the series doesn’t close on levels, they can be 200 points away from each other. At the same time, if you turn on OptimalTakeProfit, the size of maximal profit will increase by second root of maximal opened lot. It is recommended to enable OptimalTakeProfit.
  • If you want to test the expert advisor on a real account, you should turn on Close_on_TP. Then the series will close on take profits and stop losses. If the parameter is turned off, the orders are simply closed at reaching the desired profit.
  • Selection of parameters: for euro, it would be better to set the step 20, ProfitPercent about 0.3-0.5. It depends on you; in case of pound, the step is about 30.
  • The less the step is, the more profit you will make and the less risk will be.
  • Initially, orders are opened in both directions, with the lot size 0.1. You only need them to calculate the entry level.

A new version is available. The mode of retreat is added as contrasted with breakout. There is alo trailing stop for already profitable position. Here are the parameters for pound: Step 20, TrailingStop 30, ProfitPercent 0.5.

Graal for tester

Forex expert advisor “Graal for tester” is a self-training system (on history), and there is no other forex robot equal to this one. The problem of collection of historical data is solved in this professional forex ea for perfect self-training of the system on the basis of the best entry parameters of historical data basing on readings of different indicators. The MTS uses a bunch of moving averages, though you can use any other Forex indicator of a set of forex indicators.

The best metatrader ea creates a file with the best entry ST and TP parameters on the basis of optimization. This is a very simple advisor: there are only three optimized parameters – ST, TP and the number of entries. Optimization method: set the desired TP and SL and select the number of entries (20 is enough).

After optimization, test the expert advisor in the tester and you will enjoy the results.

Reliable Forex Expert Advisors – They Give Advice but do not Trade


It is no secret nowadays that almost every successful trader has a reliable 'consultant'. These consultants are actually special Forex software called 'Forex Expert Advisors'. The automatic management of a range of trading operations is the purpose of these mechanical trading systems. This process of management is based upon successful Forex trading strategies put into complex algorithms that are then included within the program of the expert advisor. So when a trader goes to the system for advice, they can find the strategic direction that will be the most profitable and be certain they will achieve a good result when they trade.

Forex expert advisors are able to immediately and correctly process huge amounts of information. What's more, Forex expert advisors have the ability to track currency pairs, perform calculations, undertake all of the required computational processes, take intelligent decisions and can place the orders. At the same time, Forex expert advisors are 'free' from the human factor, so it's almost impossible for them to make a mistake or miscalculate. On the other hand, a trader could make all these mistakes under the influence of emotions.

This is the reason Forex expert advisors are now commonly used by traders who will combine the expert advisors recommendations with manual trading and carry out trades successfully while seeing their profits grow.

Downloading Forex trading expert advisors for various systems can be done for free, Just look within any search engine and put in the right search request on the internet. Once you have all of the information you need on how to install and use the Forex expert advisor, any novice can make adjustments to their Forex trading strategy.

What's key is that Forex expert advisors mean traders do not need to constantly look at their screens all day, however, the traders still need to carry out the trade. It is these systems that will only assist traders with their trades. It is a man who has to make a decision using market analysis and the advice of the expert advisor.

How to Correctly Use a Forex Expert Advisor



Many traders use Forex expert advisors to trade on the Forex market. These systems can provide a stable profit for some people yet there are still those traders that cannot help lose their money.

However, there are an increasing number of traders who place their deposits into automated trading experts on a daily basis with the view that things will be different this time and that all they will need to do is sit back and take the profits.

But real life isn't like that. Just like any other tool, an expert advisor first of all requires learning how to use it. First of all, you should choose one for yourself and try to understand all of the minutest details and principles about how this system works. You should become familiar with all of its strengths and weaknesses. Any Forex expert advisor can make a profit when it has been adjusted and is used correctly.

There are six main groups that we can divide all Forex expert advisors into:

  • working at trend
  • working at flat
  • advisors used for trade on news
  • scalping systems
  • strategies for night trade
  • session systems.
Once you've decided which expert advisor to use to conquer the foreign exchange market, you should develop a plan of action. Set yourself a series of rules to follow and make sure you stick to them closely:
  • the time that is best for trading
  • the best currency pairs and timeframes for your expert advisor
  • the conditions of the market that are best (flat or trend)
  • trade at release of important news or wait for quiet market conditions
Despite how much you may feel confident in your Forex expert advisor advisor, it should never be left to work unattended.
Forex had a wealth of potential and anyone can fulfill their own potential within it. Find your objective, master the skills you need to achieve it and you will not have to wait too long to enjoy good fortune.

Top Robots



To find the top robots from all of the ones available in the market place is not an easy task
As a matter of fact, to award the honour of top robot to just one is very significant.
This is because of the number that are out there and each one of them will claim to be the superior product by a long way.
So, with so many organizations competing for the title of Top Robot, you need to be careful when deciding which one is for you.
When looking for the top robot, it’s useful to understand what it should do as a minimum.
Firstly, a robot is a program created to assist dealers with decisions that will generate profit while at the same time getting rid of the mistakes that all people make, including experts.
It is programmed to operate alongside the specific trading platform that the dealer uses and at its core, it has a simple function:
A dealer picks funds and chooses the level of risk that he feels the software should take.
The program then deals on the relevant market making forecasts as a result of the information run through formulae designed to increase profits.
By setting aside some time just to get to know how these programs are set up, it should give you a good grounding to select the top robot system and so increase your profits.
All of the top robots must achieve specific criteria at the highest level for them to justify their claim to be a top robot.
Initially, a key point that separates programs will be the number of pips that can be added on a weekly basis to a particular account.
Ultimately, this will boil down to the amount of profit a top robot will produce and so it should be a straightforward process to create and operate.
But not every dealer fully understands exactly how this type of software functions.
However, due to how popular these top robots are, they would be wise to get to grips with this sooner rather than later.
The majority of trades are completed automatically and forex exchange is a very flexible area that copes with many analytics.
The top robots will be designed well and have the ability to easily decipher the more complicated aspects of the market.
The top robots will also be able to give you patterns that will allow you to make specific decisions all the while you are dealing.
Normally, this type of software is introduced by a long-standing organization. By checking out the company’s historical performance and its own longevity, you can tell a lot about how well it has done. Any companies that have only just entered this market and declare it has the top robot are probably best avoided.
The companies that genuinely do believe that they have the top robots will have sufficient confidence in how well they work to offer a money-back guarantee. It is more likely that these organizations will have an excellent software program and could even turn out to be the top robot that you could be making the most of.
The more sensible approach would be to look for software that is straightforward to use and easy. If this doesn’t happen, then at least make sure your top robot has sufficient documentation as well as tutorials and help functions so that you know exactly how to work your new purchase.
By far the most vital point to bear in mind when looking for your top robot is that it must have been tested in a live environment. This means that it was actually set up to deal on a proper account and allowed to deal and more importantly, produced a good profit for the account owner.
To get hold of a top robot can be a very difficult process. But it is more likely that you will find the best software that can give you fantastic profits and get you on your way as an independent dealer.

Expert Advisor performance expectancy (part 4)

What is the calculation for the Expert Advisor performance expectancy?


The calculation for expert advisor expectancy is as follows. At the same time, refer to following schedule to see how mock EA is evaluated based on their expectancy rate.
(Accuracy  x Average win) / ((1- Accuracy) x Average loss)

Example 2: The Performance Expectancy


Winning Trades

Losing Trades

Accuracy

Average Win

Average Loss

Expectancy

EA 1

230

195

54.12%

3.1

2.9

1.26

EA 2

172

280

38.05%

4.4

2.4

1.13

EA 3

395

120

76.70%

1.5

5.3

0.93


Just like in Example 1 : The Drawdown & Profitability Factor, the final sum , which in this case is ‘Expectancy’, shows that anything above 1 is good. In this sense, it reflects net positive return on the account over the measured period. In other words, expectancy can be considered as average amount gained per trade. The more trade data included in the analysis the greater the variance.
Although EA performance can be judge using the expectancy rate, you have to remember it only reflects the overall view per trade. It does not reflect the actual performance of each trade. For instance, a scalping EA will probably have low expectancy. In this case, let us consider an expectancy of 1.15. Even though the number is low number, it should generate a large amount of trades in a period. More trade usually creates a sizable gain.
Now, if you compare this to a significant EA with an expectancy of 5.75, which only generates a few trades during the same period, you would probably reject the scalping EA. In this case, you had probably missed a potentially better EA, if you ignore the nature of the EA and its total profit. Therefore, if have a need to compare, do not compare similar EA. The one that you screened out would probably better from the one that you are left with to do further comparison.

What do we have learn so far?

 You started with understanding that you need to learn how to read trading statistic.
With that, you moved to learning how to measure your profitability. There are two major percentages or rate that you need to look at; the drawdown percentage and the expectancy rate. You discern the results on max, average and the recovery drawdown of the EA. Then you moved on to learn how the MT4 EA accuracy and win/loss ratio. Using this data, you discern performance expectancy MT4 EA.
By combining both quantifiable data, you have an idea on which MT4 EA to choose. Probably, by now you will have a list.
However, there is another part of choosing the right MT4 EA that we have not explore yet. This is the intangible or qualitative factor.

Best Forex Robot 2011

Choosing a Metatrader Expert Advisor (part 3)

How accurate is the MT4 EA and what is their Win/Lose Ratio.


Now that you already screened out MT4 EA that does not suits you, it is time to compare the remaining MT4 EA in your list. The comparison variable this time would be on performance accuracy and expectancy. When the MT4 EA place a trade, there is a possibility of win or loss. The performance accuracy dictates the percentage of winning trades vs. losing trades.

The first thing that you need to take notice is the scope of the accuracy. You must ensure that there is enough statistical data set to do a correct measurement. A reliable data should have more than 32 data points. In the case of good trading evaluation, get around 50-100 data set. It is vital to have good reliable measurement, as it will show better performance accuracy. 

Secondly, look at the average win/loss ratio. For example, an Expert Advisor has done 15 trades and 10 of these were profitable. This shows a good profitability of 66.6%. However, if you increase your data set to 45 by including the next 30 trades, you might get a different percentage. So let just say the Expert Advisor, in the next 30 trades, manage to have 12 profitable trades.

What can you see?

Total accuracy of the Expert Advisoris only to 22/45 or 48.8%. There is a drastic change just by adding more trading data in the accuracy measurement. Therefore, it is necessary to measure the complete performance with larger data. You do not really have to worry of the drastic changes. Having a larger data to calculate the accuracy will show you the accuracy in the end. So do not base the performance accuracy on short run data. The losing or winning streak might not portray the correct standing of the Expert Advisor. It probably means that there was an unexpected event, causing the short run fluctuation.
Now, let us look at the performance expectancy. Whereas accuracy analysis relies on past data and past performance, expectancy is analyzing past data to obtain future performance.

You might be surprised that performance accuracy does not necessarily mean good profitability. By combining both accuracy and expectancy, you will be able to discern the actual performance of the EA.

Best Forex Robot 2010