An Expert Advisor (EA) or forex robot is a specialized program capable of automatically trading an account, according to a set of predefined rules and parameters. Although several trading platforms support algorithmic trading, MetaTrader4 and its new generation MetaTrader5 are the most popular among traders.
There are multiple free code libraries and specialized marketplaces available for commercial MT4-based Expert Advisors. The topic of automated trading has always been very popular, attracting new and experienced traders alike. Unfortunately, Expert Advisors scams are also the most common forex frauds.
Trading strategies encoded into Expert Advisors are as diverse as the strategies used for manual trading. Some EAs monitor economic news to take advantage of the big currency moves, while some avoid trading during volatile times. Some forex robots use a grid trading strategy and breakouts in resistance and support levels. Hugely popular are scalper EAs, which hunt for profits in a small spread environment.
The best Expert Advisors are programmed as the combination of strategies to execute the most appropriate trading decisions for the current forex market conditions, to preserve account equity, and limit trading risks in multiple ways.
An EA can trade 24/5 without breaks and consider far more market variables than a trader can. Fear and greed are said to be the strongest market-moving forces and, by far, the toughest obstacles to successful trading, especially for new traders. Trading robots are not susceptible to emotions; all trading decisions made by EAs are clear and objective as coded. Then again, when market conditions fall outside the EA’s pre-set scope, its trading may not be the best.
Some Expert Advisors employ risky trading strategies (like Martingale) or lack money-management features. Some work well on certain currency pairs or during certain times, but not on others. Also, there is no shortage of scams.
Testing every EA on the market is unrealistic and costly. Forex Peace Army offers detailed analyses of commercially available (paid) EAs. All tests are forward tests performed on live accounts with a $250 minimum initial account balance. The stats are pulled directly from the broker account. This prevents common scams like fake statements, over-optimized back tests, and demo account stats that show trades that would never be executed on real accounts in the same way.
Should the test fail, the provider must double the initial deposit amount to restart the test. Although it is normal to update, upgrade, and fix their products, Forex Peace Army’s position is that sellers must be confident in their EAs and risk their own money together with the traders.
By testing Expert Advisors, Forex Peace Army helps traders find good products that suit their investment goals and trading styles. We help legitimate providers by giving them exposure to a large community of traders/investors and by adding credibility to their performance results.