Hello, these are my personal rules on how I decide whether to buy an EA or not. I will edit this post gradually.
1. Buy only an EA from a seller who provides a real account signal. Never trust demo accounts!!!
- The longer the signal is online, the more reliable is the success or failure of the EA (example*: https://www.mql5.com/en/signals/124880)
- Take a look at Drawdown and Equity! Do not let the percentage of growth dazzle you! A good explanation can be found here: https://www.mql5.com/en/blogs/post/707138
2. Do not trust any of the seller's statements (and any screenshots) about his EA. If the seller always praises his EA and does not release a signal, it's probably scam!
3. Read all reviews and ask one or two reviewers how the EA works. A second or third opinion is always important! The seller could manipulate his signal by making manual trades or letting other EAs trade on the signal!
4. If you do a backtest, do it correctly: https://www.mql5.com/en/blogs/post/685512
The important requirements are:
- the tested period (e.g. 2010-2017)
- the longer the testing period is, the better are the chances that the EA will work stable.
- the quality of the backtest (99%)
- Variable spread
Feel free to share your own rules in the comments section!
* I do not intend to promote or harm a seller, a product or a signal!