All EAs testing results are negative !??

 

I am using mt4 strategy tester and all EAs shows negative decreasing results.. its like its shown like that on purpose... like its trading in reverse!? ..i tested many tens of different proffesional and commerce versions of EAs, ALL turn out NEGATIVE charts decreasing balance... What am i doing wrong??

 

It is realted to the settings of the EAs, trading pairs, and about how those EAs were coded (open bar, close bar, high/low of the bar etc) because it is related to the broker to be used (all the brokers are having slightly different data).

Besides, backtesting results can not help in most of the cases.

For example ... if someone tells you: "this EA is profitable" si the reasonable question may be the following: "it is profitable for which broker? which settings and for which pairs? Can you profide forward testing results for us to see and analyze?'.

Without replying to this question - any talking about "profitable or not profitable" is useless.

 

That's probably because most of widely available EAs are loosing ones.

There are only few EAs which make profit and they are kept in a secret usually

 

The most dangerous EAs are whose are profitable in backtest and when you try in live they lose and lose, I know some of them... Backtest is not usefull for much EAs, especially scalp EAs... if you want backtest EAs you will need good history data, tick data if it is possible...

 

The problem with most EA is that they cannot react fast enough to changing market conditions. They trade based algorithms and programming. And all forms of programming is based on past data with the expectation that it will happen again.

The thing about markets is that even though event A resulted in event B in the past, in the present it might not happen. Conditions changed but the EA will still execute trades based on event A producing event B.

I believe all EA will fail eventually, which is why the programmer needs to keep modifying it to adapt to makrket conditions. So if you are not the programmer and you buy an EA expecting it to trade for you forever, just know that it is unlikely to be profitable in the long run.

 

That’s a great point. I’ve noticed some of the EA’s available out there have a tendency to not perform well in all market conditions. Usually they are built and/or tested to perform in specific markets, such as volatile, momentum, or range-bound price action. When using EA’s, I like to find the types of markets they perform better in, such as breakout markets, and only use them during those times. Volatility has been dropping lately, so I’ve been looking more at momentum based EA’s – but the choice is yours!

Good luck

 

i am using an EA since 4 months on live account i started with 700 $ and now my account balance is 2500 $ plus i have already been withdrawn 1000 $

i follow one simple rule

get 50-60 $ a day from it thats it and i think all EA's capable of this maximum ..we lose when we expect much more from them

 
hasnainkhan:
i am using an EA since 4 months on live account i started with 700 $ and now my account balance is 2500 $ plus i have already been withdrawn 1000 $

i follow one simple rule

get 50-60 $ a day from it thats it and i think all EA's capable of this maximum ..we lose when we expect much more from them

could you tell us what EA or even post the EA?

 

Testing EAs

I have little faith in the tester apart from using it to do basic tests to see if certain things function in an EA or to visually test an indicator. I have forwards tests this year going back 4 months on a Demo account and if I run the EA over the same period on the tester the results are totally different for a variety of reasons such as the spread, MTF code in the EA and the data etc. Try running the same EA on a Live and Demo account started at the same time on the same timeframes and currency pairs and you will see a big difference between the results yet the brokers will try to tell you that the Demo is exactly the same as the Live account, obviously that is not the case. The only reasonably reliable test is to forward test the EA on a Live account and the results even then will be different between different brokers.

 

EA is a program with certain movements. All these movements are serial. But Forex market is vulnerable. It does have some repeats but as a rule its unpredictable. EA is not able to guess it's changes as it has a written rules in his code which couldn't not be changed. That's why it better to combine ea with manual trading. Or use only manual trading

 

I agree with you. I have been in this market for very long period of time. I saw lots of these type commercial EAs. There is one thing that i guess maximum trader forget that Forex is such a market place which change constantly. If you have been trading for long period of time then you would probably agree with me that your last year trading strategy does not match with your current trading strategy. My best suggestion to all that we should not depend on those commercial if we really want to sustain in this market. We need to analyze the market trend closely in each of every day and i believe that it would help us to make a better decision in real trading instead of depending on those commercial.

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