What makes a Forex Expert Advisor profitable? - page 2

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You must trade not only forex but also metals, commodities, crypto, equities to really diversify. In some years forex for example won't do much in terms of trends but metals will do, gold, silver platinum or recently oil. No matter what trading strategy you use the amount of risk you take per trade is crucial. You can blow your account with a good strategy if you risk too much. The smaller time frame you trade the more noise you trade. You will miss real big trends in a market.
 
Victor Paul Hamilton #:
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 . 

If you have a trading system that applies different trading conditions to different market conditions, that is exactly what many EA's do. And if an MQL5 EA is too limited for your purposes, an MQL5 service is almost unlimited─you don't even have to open a chart.

If you're unable to codify your system, then the system can't be readily tested over lengthy historic data. Dismissing the science of data forecasting, and riding on luck instead, is not the answer. I suspect that additional coding knowledge is required.

 

I think none of them make an EA profitable.

Having a low Maximum Drawdown is the best metric.

 
Isaac Uriel Arenas Caldera #:

I think none of them make an EA profitable.

Having a low Maximum Drawdown is the best metric.

Deposit 1000 USD. Trade with an EA that loses 1 USD on every trade, let it trade 100 times. You will have 10% drawdown which is considered low, but no profit. 

Low drawdown by itself means nothing.

But you are right, non of the poll options make sense with regard to the question. 

 

Profitability is important, but risk control is what keeps an EA alive long term.

My focus is always capital preservation first, profit second.

 
Isaac Uriel Arenas Caldera #:

Having a low Maximum Drawdown is the best metric.

Naseepah Yatmanee #:

My focus is always capital preservation

If the same algorithm works across all symbols, all timeframes and (1) the entire available history, while continuously compounding its profits, hasn't drawdown already been tested and passed?

Hasn't it already preserved the capital? A strategy with uncontrolled drawdown simply wouldn't survive all three conditions.


From a logical point of view, why should a genuine market edge exist only on one currency pair?

All Forex pairs are traded in the same market and follow the same auction process.


If the edge comes from market behavior, shouldn't it appear across (2) all symbols and (3) all timeframes?

If it only works on one pair, isn't it more likely that we've optimized for that pair rather than discovered something universal?

 
Ioannis Christopoulos #:
[W]hy should a genuine market edge exist only on one currency pair?

For an explanation of the mathematical differences between multiple pairs/symbols, see:

Code Base

Uniformity Factor Indicator

Stanislav Korotky, 2025.04.07 14:34

This is a simple analytical (non-signal, one-time calculated) indicator that allows you to test the hypothesis that price timeseries represent a "random walk", specifically Gaussian "random walk". This can help to construct a parametric transformation of price increments into evenly distributed, more stable and predictable time series, at least in terms of volatility.

For the most efficient way to determine the Uniformity Factor of a pair/symbol, see:

Code Base

Uniformity Factor Script

Stanislav Korotky, 2026.01.07 16:38

The script provides a quick estimation of an exponent/power factor for transformation of variable-length price increments into uniform distibution, that makes them a "random walk". The estimated value characterizes current symbol as more profitable when using in a particular trading strategy.

 
Ryan L Johnson #:
random walk


 Some have pointed out instances where stock prices don't follow a random walk, such as during bubbles or flash crashes.
Prices may be driven more by emotional factors than by randomness in these cases.

 
I think 3rd option is good enough alone.
 
Ioannis Christopoulos #:


 Some have pointed out instances where stock prices don't follow a random walk, such as during bubbles or flash crashes.
Prices may be driven more by emotional factors than by randomness in these cases.

That's the point of applying the Uniformity Factor to the precise symbol, timeframe, and/or custom chart structure that you intend to trade.

I prefer to work with actual statistics rather than generalities regurgitated from the Googler.

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