Don’t Buy an EA Unless It Meets These 9 Criteria

Don’t Buy an EA Unless It Meets These 9 Criteria

1. Is it being tested with a higher spread to ensure robustness? It is important to test your EA with a higher spread to ensure that it is not a broker-dependent EA.

2. Has it been tested with more than a 10-year period? Don’t get fooled by EAs that are curve fitted over a few years. How does it perform during 2002 Equities Sell-off, 2006 Emerging-Market Crash, and 2008 Subprime Meltdown?

3. Is it still profitable when tested with fixed 0.1 lot? This test will eliminate martingale, grid, and average trading. Don’t get fooled by the promises of easy money and outrageous gain.

4. Does it make more than 500 trades during a 10-year period? With fewer trades, the EA is more likely to be curve fitted, and it does not meet statistically the law of large numbers.

5. Does the largest winner of this EA account for more than 5% of the total profit? Developers tend to select large trends for most of their EAs’ profits. A large trend does not occur all the time, and this is known as selective bias. So avoid EAs with large take profits and large stop loss.