How can you create/find a truly profitable EA?
About consistent pips
My martingale strategy works for the second week but so far it increased balance by 5% having max margin of 17% (not loss, margin, 100:1 leverage).
TP and SL = 50.
No idea what will happen in the future...
And there are no ways to build something that never loses, its true. Hedging EA will sooner or later kill your depo because different pairs are really not that correlated.
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A forum mate asks me about my experience with EAs and if I've found one that produces consistent profits, I'd like to share my reply to you all and hope everyone here find or create a truly profitable EA and make decent money using it!
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Hi,
Thank you for your msg.
My experience told me it's very difficult to build an EA that can produce consistent profit every month. Because nobody can predict consistently correctly the changing market conditions and since EAs r made by somebody who cannot predict correctly everytime, consistent profit is a dream.
having said that, there is one type of EA that can increase ur balance everyday, provided u dun over-invest, and plus some luck, u may end with higher balance at the year end. That type of EA is hedge EA, where you collect swap profit everyday. What you do is to open an a/c that have 200:1, or 400:1 leverage, invest only 1% of ur money, pick a cp that has very high swap rate, usually gbp/jpy, gbp/chf, and hedge against it with 2, 3 related cps. There r some guys in this forum and others doing it already. I've also made an EA and tested it for about 2 months with max risk, i.e. invest the largest lots possible, it made 40% increase (swap profit + capital profit) in a month but then got margin call and end up losing 20%. However, if u do it with min risk and with some luck, u'll have a return of about 10% a year I think. That's the only EA that makes consistent profit as I find out.
About robinhood, that's from glennbacon and made famous thru last year's championship. I'm not sure about his latest EAs, but he has once published live and demo statements on his website with robinhood v2.1, and like martingale EAs, one loss can kill all ur profits, it's shown on the statements. the ea has a very high % of profit trades because the sl is usually 200, 300pips or more, with only few pips of tp. so the ratio is amzingly low, and hence risky. i think even a nobrainer ea with say 5pips tp and 500pips sl can shoot over 80% profit trades. but again u lose once, u lose all. Well, he may have improved his EAs, so u need to consult him for more info.
I've also tested different types of martingale eas, they are temp winners and you need to be a very lucky person, but in the long run, u lose for sure. so if you have a mini of 500, u may find a martingale and try ur luck for a month, if you win like 50% or more, thank God, and immediately remove that ea. Find another one, if your a/c bal drops to below 500 again, try a martingale, try ur luck again. a martingale ea is the last resort for a desperate lazy trader i'll say.
Ok. Now there's another type of EA, half automated, meaning it gives u signals of entry and exit, and most importantly it's equipped with a good money management sytem to calculate lot size, tp, sl, ts. but you need to make the final decision. The best part for this type of EA is that it increases your chance of winning, minimize ur loss, and helps u stay longer in a winning trade. There r ppl like Alleco who made this type of EAs. I've also just made one which can be fully automated, but i'll trade it manually. It tells me what's the current trend, when to enter a trade, how many to enter based on price movements, when to top up, when to cut loss, when to exit, current profit/loss of each individual cp, current total account profit, etc...So with all the information, I make a decision to trade, to top up, to close a trade.
For example, i may close all trades when account profit reaches 10%, or I may close only gbp/usd trades with this pair's profit reaches 5%. Like that.
So this kind of EA provides more information so you can make a decision more wisely, and they do all the open, close of trades kind mechanically so that increases ur chance of winning.
The above r just my 2 cents from my experience. Ppl's experiences differ, so you may consult more ppl to finally come up with your own system, ea. Remember, dun dream about pay a few hundred to get a system to make consistent profit for you while you doing nothing. that is impossible. there's no free lunch. u learn from others, u make ur own ea, u pray God for luck, that's the only way to win by using an ea.
Good luck mate!