what are the risk involved in using EA,s or Robot

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1)I need to know the advantages and disadvantages involved in using a robot for auto trading?

2) How much should be the account balance when using EA to be on safe side ?

3) Any views on genuine intellegent Robots :)

I still feel personal strategy more reliable for day to day trading. But feel like checking on EA,s :)

 
EAs are very advantagous as they release you to do other things and are able to trade 24 hours even when you are sleeping. Forex is all about your own money management thats why you find while one person is losing the other one using the same strategy is winning. And EAs do take out emotions from trading i.e. closing trades too early or too late. Overall i cant find any disadvantages of EAs as they are a good way of knowing which strategies work before jumping in. What i would recomend is that if you use a EA let it do the trading if it sets take profit at 200 pips dont come and see the trade is at +100 and get greedy and close it because most are optimised for the parameters they set and intefering with these might lead to losses rather than gains. The only disadvantage about EAs is that they are mostly technical they dont consider other factors like news releases but this is not quite a downside because majority of traders also dont follow news releases which most of the time overrides technical/indicator signals and thats why the majority lose rather than gain. EAs are very good for both winning traders and beginners thats why as a developer someone comes tells you something like this "hi i have a good strategy ive been using successfully for the past 3 years but i want a EA based on it so i wont have to stay at my computer all the time" you see thats a successful trader but what he doesnt want is to be infront of his computer all the time but to let his strategy run automatically and possibly improve the strategies profitability because the EA would still trade the times he normally wasnt able to.
 
tonny:
EAs are very advantagous as they release you to do other things and are able to trade 24 hours even when you are sleeping. Forex is all about your own money management thats why you find while one person is losing the other one using the same strategy is winning. And EAs do take out emotions from trading i.e. closing trades too early or too late. Overall i cant find any disadvantages of EAs as they are a good way of knowing which strategies work before jumping in. What i would recomend is that if you use a EA let it do the trading if it sets take profit at 200 pips dont come and see the trade is at +100 and get greedy and close it because most are optimised for the parameters they set and intefering with these might lead to losses rather than gains. The only disadvantage about EAs is that they are mostly technical they dont consider other factors like news releases but this is not quite a downside because majority of traders also dont follow news releases which most of the time overrides technical/indicator signals and thats why the majority lose rather than gain. EAs are very good for both winning traders and beginners thats why as a developer someone comes tells you something like this "hi i have a good strategy ive been using successfully for the past 3 years but i want a EA based on it so i wont have to stay at my computer all the time" you see thats a successful trader but what he doesnt want is to be infront of his computer all the time but to let his strategy run automatically and possibly improve the strategies profitability because the EA would still trade the times he normally wasnt able to.


Thanks ! That was very informatic. I am fresher to trading and most of the time i use demo account for practise. You are right in saying "i cant be in front of the computer for all the time". So EA,s can be of very help at this juncture. Normaly strategy that i use is i go with flow of the day, so nothing much technical about it :) and this makes good trade for me. But some time this strategy is not that effeective and have to close trade soon to minimise the loss :). I have following few queries:

1) Is there any specific balance to be maintained to start with EAs.

2)Is ther any manual intervention (setting of parameters) required during the running of EAs or it is just plug and play.

3)How to find which EAs is good (there are 100s when i searched on google. I am new on this forum (just one day old). There are some EAs competions on this forum, if you are n this forum for long will you be in position to tell me about how to pick EAs ((if it is possible).

Thanks for the value information.

 
nikhil123:


3)How to find which EAs is good (there are 100s when i searched on google. I am new on this forum (just one day old). There are some EAs competions on this forum, if you are n this forum for long will you be in position to tell me about how to pick EAs ((if it is possible).

In general, any EA you can buy is not worth the money you will pay for it . . .
 
For any trader its critical to have good money management wether with EAs or manual trading. If a EA provider recommends certain settings for lot size and balance it would be best to adhere to the recommendations always play safe because any extra amount you make is still worth. For point 2 in my view any premium expert advisor should have the best optimised settings inbuilt. The only setting that should be for the user should be those involving your account/money management i.e. like lot size or settings that dont involve the opening/closing criteria unless its a custom built EA and also settings like TP and SL should be already inbuilt or managed by the EA. For free EAs you shouldnt expect too much since the developers develop them with the thought that they dont owe the user anything since they gave it free anyway and you should atleast be familiar with the strategy its gona use and its upto you to strategy test and find the best way to use them. Overall its best to inquire from the seller what is required to use the EA and wether the EA is already optimised before you buy.
 
raptors sentiment isnt true taking for example Xbug Ultimate EA has made 1,300 pips since 1 january 2012 and it costs only $199. We do have actual testimonials of people who returned the buying price in less than a month one person actually claimed he has made over $10,000 so far in our follow up.
 
How much DrawDown has there been since Jan 2012 ?
 
30%
 
tonny:
30%
Really ? come on, tell the truth, don't be shy . . .
 
tonny:
30%

But how to judge good EA for myself ? i am confused.... when searching all give glossy pictures, for me it look very nice. But i dont knw the true picture. Any guidance plz....
 
Hi, I have written my own EA and it works fine BUT when I opened the live data for the first time there were some data missing and the EA got confused (it is based on the last 200 bars). Therefore I would suggest at first to make sure that you have complete data in your MT 4 and only then start your EA. I was fortunate enough that the new live account was not funded yet and so there was no chance for the EA to place an incorrect order... Pavel
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