Getting EA's approved by prop firms without the source files?
Hi, I've recently been looking to start trading with prop firms and I noticed that they usually ask that you send mq5 and ex5 files to get your EA's approved either before or after passing the challenges...
Does anyone have experience navigating this because I've got many questions and concerns:
1. I'm not always comfortable sharing my source files with these firms if I don't know that they can be trusted, so what should I expect if I don't share the source files? Is that going to prevent me from using my EA's?
2. What do you do if you don't even have the source files? Do any of you have any experience with a similar situation? For example, an EA that I would like to use is a copy trader EA that I use to copy my own trades into different accounts, but I don't have the source files for that EA, so how would I get it approved?
4. How would they even know if the EA you sent them is the one you're going to end up using? (I'm just curious)
5. If I want to share my EA's ex5 files with other traders, how are they going to get them approved without the source files? (EA doesn't trade automatically so we would all have different trades). I wouldn't want this to be a reason other traders couldn't use my EA if I made it public...
PS: Please do not discuss specific prop firms as this is not allowed.
If any of you has any insight that could help, I would really appreciate it. This has been a source of stress for me for a couple of weeks now and I'm finding it hard to get the answers I need.
Thanks in advance!
Never suspected that getting an EA approved means sending them either version of the EA's. That would be ruduculous if indeed was the case!!
No, only a minority ask to see the EA. In fact out of all the firms I researched, only 5 requested access to the EA for testing.
Most of the firms that I researched asked that you only use your own EAs and that you refrain from using 3rd party EAs. Most also did not allow any kind of copy-trading or HFT EAs.
After all, they are investing in YOUR abilities, not that of others. Trading Assistants and Trading Panel type EAs are not considered a problem. They only don't want you using fully automated EAs provided by 3rd parties.
By the trade activity mostly.
Given that they ask you to refrain from using 3rd party EAs, then the same would apply to the other traders who are using your EAs.
However, assisting EAs such as trading panels, are not really a problem in this case. They don't really count as fully automated EAs that need validation.
There is no stress at all. You just have to be methodical and read all the FAQS that the firms provide, taking notes and comparing them, and reaching out to them when you have a query.
Take a few lessons from Prop Firms (Part 1) — An introduction
Fernando Carreiro, 2023.04.19 16:20
In this introductory article, I address a few of the lessons one can take from the challenge rules that proprietary trading firms implement. This is especially relevant for beginners and those who struggle to find their footing in this world of trading. The subsequent article will address the code implementation.
Yes, some prop-firms do request access to test the EAs. It is not ridiculous.
It is their money they are investing and they want to make sure that is not a risk for them. You would consider that absolutely normal if you were in their shoes.
Here are some other related posts of mine from other forum threads ...
Forum on trading, automated trading systems and testing trading strategies
Fernando Carreiro, 2023.11.23 21:43
Most prop-firms want to attract real traders that know what they are doing and are consistently profitable, so that they can be an asset to companies in the long term.
The fact that you are not consistently profitable and have to depend on a signal is of no interest to them. They can just follow the signal themselves if they wanted to.
So, for those prop-firms, if you try to cheat, then you deserve to be in trouble.
So, find a prop-firm that actually allows signal following, and don't try to "cheat" the system. You will only end up loosing your fees.
Or better still, invest in yourself and learn to become a profitable trader.
Forum on trading, automated trading systems and testing trading strategies
Fernando Carreiro, 2023.11.19 10:08
... "I have heard" ...
Did you take the time and put in the effort to actually research the various prop-firms, comparing them, looking up their trust ratings, reading reviews, etc.?
Don't accept hearsay and just assume things. If you intend to trade with a prop-firm then do your homework.
But most importantly, make sure you actually know how to trade properly, consistently and professionally long term, or else you will just be wasting your money on prop-firm challenges.
Forum on trading, automated trading systems and testing trading strategies
How do people use same prop firm EA and do not get banned?
Fernando Carreiro, 2023.11.30 13:32
Yes, if it is a legit prop-firm and they detect too many users trading in the same way, especially if it is an EA (which they can detect), they will probably reach out to the traders.
However, in my opinion, I believe this will not happen much, simply because if the "traders" are unable to meet the challenge themselves on their own merits, and have to use a Market product to do it, then they also lack the knowledge and skill to use it properly and will end up failing anyway, never moving on to the funded state.
Forum on trading, automated trading systems and testing trading strategies
Is there a reliable, proven, prop firm EA?
Fernando Carreiro, 2023.11.07 22:09
Again not true. I researched 43 prop-firms and only 5 of them discouraged the use of EAs.
However, those same 5 prop-firms, would still allow EAs, provided the EA executables were submitted for testing and evaluation, and if they passed, they would be allowed for live trading.
I researched prop firms in the USA, Canada, UK, Liechtenstein, Malta, Cyprus, Czech Republic, Israel and UAE.
EDIT: Obviously, I only researched prop-firms that offered MetaTrader as a platform. I did not research others that did not.
Thanks Fernando, always very insightful!
I get your point that they don't want traders trading somebody else's algo, I wouldn't want that either in my prop firm. So I'll use that next time, I'll start by saying that I understand that they don't want that and explain that this is not at all what my EA does. I'll proceed to explain exactly how the EA is only an assistant and provides no signals, or for my other EA that it copies my own trades from my personal account but that no other traders has access to those signals. I'll tell them I don't have the source files and that if they need proof I can show them videos of my trades being taken. I don't know if this will work but I'm hopeful all of a sudden. I guess the important part of the negotiation is showing that you understand why they would want to restrict the use of certain types of EA's and prohibit signal following, start from this understanding and then see what happens...
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Hi, I've recently been looking to start trading with prop firms and I noticed that they usually ask that you send mq5 and ex5 files to get your EA's approved either before or after passing the challenges...
Does anyone have experience navigating this because I've got many questions and concerns:
1. I'm not always comfortable sharing my source files with these firms if I don't know that they can be trusted, so what should I expect if I don't share the source files? Is that going to prevent me from using my EA's?
2. What do you do if you don't even have the source files? Do any of you have any experience with a similar situation? For example, an EA that I would like to use is a copy trader EA that I use to copy my own trades into different accounts, but I don't have the source files for that EA, so how would I get it approved?
4. How would they even know if the EA you sent them is the one you're going to end up using? (I'm just curious)
5. If I want to share my EA's ex5 files with other traders, how are they going to get them approved without the source files? (EA doesn't trade automatically so we would all have different trades). I wouldn't want this to be a reason other traders couldn't use my EA if I made it public...
PS: Please do not discuss specific prop firms as this is not allowed.
If any of you has any insight that could help, I would really appreciate it. This has been a source of stress for me for a couple of weeks now and I'm finding it hard to get the answers I need.
Thanks in advance!