What do you check before buying an EA? These are the 7 things I look at - page 2

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Tasi Churchill Mofor #:
This is the checklist I wish every buyer used. It's also the standard I try to build to as a developer.
Two additions:
8. Does the logic match the risk? Ask the developer how the EA exits losing trades. If the answer is "it waits," that's your grid/martingale warning from point 2. A hard stop loss on every trade means the equity curve can't hide anything.
9. Is the settings page honest? Check whether the developer lists the recommended broker, spread limit, and risk per trade, and whether results were tested at those exact settings. Backtests on the default setfile with ideal spreads tell you little.
On point 3, I'd also look at the same period on a different broker's data. A real edge survives that. A fitted one often doesn't.
I build XAUUSD EAs, so these are things I check on my own products first: fixed risk per trade, daily loss limit, spread and news filters, and live results on Myfxbook. If I can't show it, I don't claim it.
Which of the 7 do you find sellers fail most often? My guess is #5.
Hi Tasi,

thanks, nice to hear it from the developer side.

Your point 8 is a good question to ask. I'd add one thing from my own experience: a hard stop on every trade helps a lot, but it's not a full guarantee. When the market opens with a big gap, the position gets closed far past the stop.
That's how i lost a prop account, the daily limit was 5 % and the day ended at about 7 %. So I'd also look at how many positions can be open at the same time, not only whether each one has a stop.

The same period on a different broker's data is a good test, I hadn't put that on the list.

To your question: for me it's #3. Most backtests I've seen look a lot better than the live signal of the same EA, especially the drawdown. #5 is common too, but #3 is the one I run into almost every time.

Best Regards,
Chris
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