If an EA Is Truly Profitable, Why Sell It? - page 2

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Lei Zhai:

If EA can continue to make money, why would it need to be sold on the MT5 market?

Wouldn't creators make more money by quietly trading with their own funds instead of selling copies for a few hundred dollars?

As a potential buyer, this has always been my biggest concern. Is there a reasonable explanation, or should traders generally be skeptical of publicly selling EAs?

I would love to hear the real opinions of developers and traders.

Let me tell you the truth, if your account make lot of money, huge slippage or you are not allowed to withdrawal. So selling products is the best way to make money.
 

Because I don't have enough capital to put into my EA(s) and live off the profits. A $5k–10k account isn't enough to cover basic living expenses.

I can't just walk into a bank and get a loan. If I found at least $100k to manage, then yeah, I'd probably take my EA(s) off the market and keep only the signal, or maybe no signal at all.

Also, REAL trading (in my view) is a "get-rich-slow" process, while GAMBLING is a "get-rich-fast" one (with a near-zero chance of success). And I'd rather share the income than spend more time, because time is something I can't buy back later.

 
On the other hand, if someone claims they have a "holy grail" making 50% a month with low drawdown and unlimited scalability, then yes... I'd be asking why they're selling it instead of quietly becoming a millionaire.


Can you exactly explain me what does it mean and how can I do to make an EA "full scalability"?? Sorry for my ignorance.. 
 
Yip Sin Hang #:
Let me tell you the truth, if your account make lot of money, huge slippage or you are not allowed to withdrawal. So selling products is the best way to make money.
That’s an excellent point, Yip, and it’s the worst-kept secret in the industry. However, there is a crucial nuance to consider: the issue isn't about making money, but rather HOW the algorithm makes it.

If an EA generates millions through swing trading or trend following (holding positions from several minutes, hours to multiple days), the broker routes those orders directly to the interbank market (A-Book). They rake in massive commissions and process withdrawals without batting an eye because that trader is highly profitable for them.

The nightmare of frozen accounts and denied withdrawals happens when an algorithm relies on toxic order flow. The EAs that 'blow up' retail accounts often exploit latency arbitrage, millisecond-fast scalping, or micro-glitches in the broker's servers. This type of trading is deemed toxic because it is impossible to hedge on the real market; meaning the broker has to pay those profits out of their own pocket (B-Book).

That being said, I’m a fan of HFT as well. I’d love to see in action the algos that got you into this situation, but I can't find any on your profile or your website.

Alexey Dudin #:

Because I don't have enough capital to put into my EA(s) and live off the profits. A $5k–10k account isn't enough to cover basic living expenses.

I can't just walk into a bank and get a loan. If I found at least $100k to manage, then yeah, I'd probably take my EA(s) off the market and keep only the signal, or maybe no signal at all.

Also, REAL trading (in my view) is a "get-rich-slow" process, while GAMBLING is a "get-rich-fast" one (with a near-zero chance of success). And I'd rather share the income than spend more time, because time is something I can't buy back later.

Obviously nobody will contact you via PM to "give you 100k$", you'd better give a try with prop firms - it's another way to be funded.

 
Simone Ceriotti #:
Can you exactly explain me what does it mean and how can I do to make an EA "full scalability"?? Sorry for my ignorance.. 

Here's a little known position sizing method to help with scaling up.

Let's assume that you have a simple entry and exit EA with a profit factor of 1.5, for example:

  1. Run it through the Tester.
  2. Read the Tester Report carefully.
  3. Pay particular attention to the months, days, and hours in which the EA is profitable.
  4. Code a time filter that blocks entries during the worst times in the EA.
  5. Run a fresh backtest with the time filter implemented.
  6. Examine the average count of consecutive loss trades─let's call this "NL".
  7. Code automatic position sizing based on say, 1% of account balance, into the EA.
  8. Code an exception to that 1% position size that triggers when NL+1 occurs (the EA has exceed its average loss count).
  9. Code an overriding minimum position size of say, 0.01, to operate when that exception occurs.

The purpose of that process is to solve the mystery of attempting to predict when the EA's logic will be profitable versus unprofitable. Arguably, the best way to track live prices, spread, slippage, etc. is to simply continue trading. Of course, it's nonsensical to continue on trading as if losing streaks don't exist─hence, the bottomed-out position size at the start of each losing streak. As soon as a tiny trade returns a profit, the balance-based position size is once again in effect. As a result the account balance grows, the default position size grows, the account balance grows─it's a viscous "profit loop." Get ready to add some zeros to the backend of your EA's net profit.

Icham Aidibe #:
If an EA generates millions through swing trading or trend following (holding positions from several minutes, hours to multiple days), the broker routes those orders directly to the interbank market (A-Book). They rake in massive commissions and process withdrawals without batting an eye because that trader is highly profitable for them.

Unfortunately, that is so true. In fact, it happened to me without earning millions─it was merely 5 digits. I made a large withdrawal for the purpose of switching broker-dealers and my old broker-dealer closed my account without me even asking. if the goal was to make the disdain mutual, their plan certainly worked.

It's rather ironic that I can get better service from a prop firm than a registered FX broker-dealer. In fact, the apex of success at the prop firm that I use would be a direct hire with a salary.
 
Ryan L Johnson #:

Unfortunately, that is so true. In fact, it happened to me without earning millions─it was merely 5 digits. I made a large withdrawal for the purpose of switching broker-dealers and my old broker-dealer closed my account without me even asking. if the goals was to make the disdain mutual, their plan certainly worked.

It's rather ironic that I can get better service from a prop firm than a registered FX broker-dealer. In fact, the apex of success at my prop firm would be a direct hire with a salary.
What percentage of your account balance did you try to withdraw ? How did they justify their refusal ?
 
Icham Aidibe #:
What percentage of your account balance did you try to withdraw ?

All of the balance, except for 1 USD.😂

Icham Aidibe #:
How did they justify their refusal ?

They claimed that I hurt their GBPJPY liquidity.🙄

 
Ryan L Johnson #:

All of the balance, except for 1 USD.😂

They claimed that I hurt their GBPJPY liquidity.🙄

Withdrawals are no longer processed automatically and require manual approval at $50,000 or above depending on the broker: it's no surprise to you that they closed the account 😅
 
Icham Aidibe #:
Withdrawals are no longer processed automatically and require manual approval at $50,000 or above depending on the broker: it's no surprise to you that they closed the account 😅

Yerp. We mutually disdained each other. The 1 USD represented a middle finger.😂

FYI, every FX broker-dealer in the U.S. is required to have 20 million USD in reserve capital. 5 digits are merely a drop in the bucket in that case.

 
Ryan L Johnson #:

Yerp. We mutually disdained each other. The 1 USD represented a middle finger.😂

FYI, every FX broker-dealer in the U.S. is required to have 20 million USD in reserve capital. 5 digits are merely a drop in the bucket in that case.

Probably they were lying then ... They took it as an offense. 
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