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Before Buying Expert Advisor

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Kiran Chandekar
1478
Kiran Chandekar  

Before Buying EA do the below analysis while testing the EA. Don't get impressed by seeing 15 digits profit on investing 3 digit money. Know the ground realities  : )

 

  • Find out whether EA is using Martingale. For example if you see loss on first order then 2nd order should not have lot size more than first order. Tghis means trader is using Martingaly style.
  • Lot size getting increasing if last order is in profit (this is the sign of Good Expert Advisor)
  • See whether stoploss is being implemented in EA. After opening of order it should have modification so as to set Stoploss.
  • There should be a drawdown for EA. Zero drawdown means EA is not setting stoploss which may loose your entire capital on wrong move.

Simon Gniadkowski
Moderator
18021
Simon Gniadkowski  
kchandek:

Before Buying EA do the below analysis while testing the EA. Don't get impressed by seeing 15 digits profit on investing 3 digit money. Know the ground realities  : )

 

  • Find out whether EA is using Martingale. For example if you see loss on first order then 2nd order should not have lot size more than first order. Tghis means trader is using Martingaly style.
  • Lot size getting increasing if last order is in profit (this is the sign of Good Expert Advisor)
  • See whether stoploss is being implemented in EA. After opening of order it should have modification so as to set Stoploss.
  • There should be a drawdown for EA. Zero drawdown means EA is not setting stoploss which may loose your entire capital on wrong move.

Your 1st and 2nd statements (in RED) are incorrect.
Kiran Chandekar
1478
Kiran Chandekar  
RaptorUK:
Your 1st and 2nd statements (in RED) are incorrect.

Hi Raptor

How can we find out that EA is using Martingale strategy. 

Stefano Giacone
241
Stefano Giacone  
kchandek:

Hi Raptor

How can we find out that EA is using Martingale strategy. 

You're correct. But they're still very (too) basics rules... It's not that difficult to find out martingale.

Folks: please avoid martingale. 

Simon Gniadkowski
Moderator
18021
Simon Gniadkowski  
kchandek:

Hi Raptor

How can we find out that EA is using Martingale strategy. 

Ask the seller.
Vitor Matinhas
800
Vitor Matinhas  

Why you don't like martingale?

a martingale strategy, with low initial lot and a very comfortable free margin is a good EA in my opinion.

Kiran Chandekar
1478
Kiran Chandekar  
matinhas:

Why you don't like martingale?

a martingale strategy, with low initial lot and a very comfortable free margin is a good EA in my opinion.

I think a martingale strategy, with low initial lot and a very comfortable free margin will have less returns on investment.
Gurmeet Budhraja
567
Gurmeet Budhraja  
kchandek:
I think a martingale strategy, with low initial lot and a very comfortable free margin will have less returns on investment.
martingale is a killer strategy, it is sure to ruin you one day. Go and google on Signals for <Link removed by moderator> - it is a live example on MQL5. Any EA based on martingale is worst EA.
Ingvar Engelbrecht
4506
Ingvar Engelbrecht  

I used what I deemed a good EA. Tested it for 6 month. It had a return on investment between 6% to 10% monthly. It used Martingale. I run good on a live account for approx 1 year. Then  the long drawdown on the euro came along

Busted the account. Lost a bundle of real money.

Martingale? No way! A good EA DO NOT NEED Martingale. Period!

Kiran Chandekar
1478
Kiran Chandekar  
ingvar_e:

I used what I deemed a good EA. Tested it for 6 month. It had a return on investment between 6% to 10% monthly. It used Martingale. I run good on a live account for approx 1 year. Then  the long drawdown on the euro came along

Busted the account. Lost a bundle of real money.

Martingale? No way! A good EA DO NOT NEED Martingale. Period!

Yes for Martingale EA  one time come wherein trades in sequence are not in our favour & finally we come to conclusion to stay from this.
Mirza Baig
2428
Mirza Baig  
gurmeetb:
martingale is a killer strategy, it is sure to ruin you one day. Go and google on Signals for <Link removed by moderator> - it is a live example on MQL5. Any EA based on martingale is worst EA.
Yep, martingale is doomed to fail. Better to use anti-martingale and compound profits.
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