What makes a Forex Expert Advisor profitable?

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  • 25% (5)
  • 5% (1)
  • 30% (6)
  • 40% (8)
Total voters: 18
 
Luck !!  and knowing when to  turn it on depending on market conditions , they all have strengths and not one can do it all . 
 
Victor Paul Hamilton #:
not one can do it all

I do not agree. As i am developer first and trader second, i cannot write random code and "hope" it will win.

Even poker algo's who claim to be random, are not.

The statement "95% of traders lose money" is an outcome.

If profitability is possible for some, then understanding the factors that separate the profitable minority from the losing majority may be more valuable than focusing on the statistic itself and call it "luck".

 
Ioannis Christopoulos:
  • Works on All FX Pairs
  • Works on All Timeframes
  • Works Across All Available History
  • All of the Above
you lacked the option: Diversification
 
Cristian David Castillo Arrieta #:
lacked
A strategy that survives ALL pairs, ALL timeframes, and ALL market cycles is naturally diversified, isn't it?
 
Victor Paul Hamilton #:
Luck !!

As we know, there are about 9 losing traders for each profitable trader in the financial markets. In contrast thereto, I hear that there are about 2.9 losing gamblers for each profitable gambler in the so called "prediction markets."

If I were a gambler, I would probably have a look at prediction markets. Technically, those event contracts are now CME listed futures in the U.S.─as wild as that may be. Therefore, you could still call yourself a "trader" I guess.

 
Ryan L Johnson #:
As we know, there are about 9 losing traders for each profitable trader in the financial markets. In contrast thereto, I hear that there are about 2.9 losing gamblers
Be carefull Ryan you might convince me to gamble now 😂😂😂
 
Thomas Eduard Van Der Jagt #:
Be carefull Ryan you might convince me to gamble now 😂😂😂

😅😂🤣

TBH, I don't recommend it if you're a technical trader like me. Charting one-time events is impossible.

If you're a fundamental trader, maybe you could put all of your eggs in one news event and call it trading.🤷‍♂️

 
It is not writing random code it is having different tools for different market conditions and knowing when to apply them , One EA can't do it all and never will and at the end of the day as a retail trader I hate to burst your bubble but luck is the deciding factor . 
 

Also add option none of the above :)

I've seen so many EAs just written for specific pairs like gold or bitcoin. Which would not do great for other symbols.
Also so many EAs work only for specific timeframes and will do badly on lower timeframes.
And some work in specific sessions only. So will not do good during slow/dead markets.

So I think looking for one tool for everything is not going to be good.

 

Short answer:

The ability to automate a strategy that can consistently exploit a genuine market edge.

Long answer:

An Expert Advisor (EA) is just a tool. Its purpose is to automate the execution of a trading strategy. Therefore, an EA cannot be profitable by itself. The real source of profitability is the edge behind the strategy.

If a strategy has no edge, an EA built on it is usually nothing more than a curve-fitted model optimized for historical data. Any future profits are then dependent on luck and on whether past patterns happen to repeat.

A useful analogy is mining. The EA is the mining crew, the strategy is the extraction process, and the edge is the geological knowledge that valuable resources actually exist underground. Without that knowledge, past extraction results say little about future profitability.

Only a genuine edge (an understanding of statistical properties, probabilities, market mechanics, or other causal factors) provides a rational basis for expecting future profits.

Backtest profits do not make an EA profitable. A real and persistent edge does.

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