How can I use EAs Correctly With Prop Trading Accounts?

[aleksandre.dumas]

Is there any correct method to set up expert advisors for prop trading companies?

[Sergey Golubev]

Just for general information:

Take a few lessons from Prop Firms (Part 1) — An introduction

[Evren Caglar]

aleksandre.dumas:
Is there any correct method to set up expert advisors for prop trading companies?

Generally speaking, it is not an easy task.

But I can tell you something and you can use this as a rule of thumb.

When you backtest an expert advisor, you have statistics - Max Equity Drawdown. It is the value that defines your risk. When you run an expert advisor in a prop company, you need to take into account that value.

That is, if your daily DD limit is 5%, it is 500USD for a 10K account.

If the  Max Equity Drawdown is say, 1200USD, basically it is risky to use that EA.

Ideally, you want to use an EA that generates max equity DD under 500USD, or you need to play with the optimization for the same EA.

Overall you need to balance between the daily DD limit  of prop account and the max Equity DD of the expert advisor.

Hope this helps...

[aleksandre.dumas]

Evren Caglar #:

Generally speaking, it is not an easy task.

But I can tell you something and you can use this as a rule of thumb.

When you backtest an expert advisor, you have statistics - Max Equity Drawdown. It is the value that defines your risk. When you run an expert advisor in a prop company, you need to take into account that value.

That is, if your daily DD limit is 5%, it is 500USD for a 10K account.

If the  Max Equity Drawdown is say, 1200USD, basically it is risky to use that EA.

Ideally, you want to use an EA that generates max equity DD under 500USD, or you need to play with the optimization for the same EA.

Overall you need to balance between the daily DD limit  of prop account and the max Equity DD of the expert advisor.

Hope this helps...

Thank you very much for all, I appreciate it!

[Evren Caglar]

aleksandre.dumas #:
Thank you very much for all, I appreciate it!

Welcome, please also have a look at the blog post, some day you may need it:

https://www.mql5.com/en/blogs/post/757693