Prior to selecting an Expert Advisor and in order to be able to make a correct choice you should consider the following factors;
- There is no perfect Expert Advisor
No forex trading bot can trade successfully on all kinds of markets and market conditions and with all types of fx brokers and forex accounts
- It is essential that you know how an Expert Advisor works
Automated forex trading involves risk and it is always useful to know how it works
- No forex trading trading software can be constantly successful if left without attendance
It is crucial that the developer supports the software with regular updates. All automated trading systems we accomodate enjoy regular software updates
- Make sure that your Forex Robot employs risk management
Accommodating a stop-loss is a must and being able to customize stop-loss is even better. Employing risk management algorithms is more important than any particular strategy. All forex EAs we accommodate offer with adequate stop-loss features
- Avoid using an Expert Advisor if you haven’t tried it on a demo account first
It is strongly recommended that you test every forex EA on a demo account first prior to using on a live account
- Ensure that your forex broker of preference and trading software are compatible
Not all forex robots work well with all fx account types and you should consider leverage, balance/equity and possible limitations related to trading conditions. All Expert Advisors we currently accommodate are compatible with our featured brokers
- Perform back-tests when possible
Before trading on a live account, simulate performance if possible or check for existing back-tests
- Search for Expert Advisors that can show verified results via third party applications or that have been tested by an independent authority
The bitter truth is that there are an enormous number of out-dated, badly programmed and otherwise unsuccessful forex trading bots that are dishonestly marketed as profitable when they are not. Our ongoing research enables us to exclude unsuccessful forex robots from our listing and present you only with the Best Expert Advisor.
EVALUATING THE STATISTICS
Evaluating forex EAs or other trading systems is all about analysing the statistics. You should be considering the following, prior to making your selection;
- Reward-to-Risk ratio
The ratio of the amount you can expect to win for each unit invested, over the amount you are risking to lose, not neglecting to consider commissions; (profit - commission) / (maximum drawdown + commission). This will show if an Expert Advisor is employing a high risk strategy. If this value is below 1, you should be looking for an other Fx Robot.
Indicates potential drops in value, and informs of the general volatility of a forex trading bot. If your equity curve chart does not display a smooth curve, and instead it’s showcasing large and recurrent peaks and troughs, you should be looking for another Expert Advisor. A max drawdown of less than 20% is preferable and anything over 50% should be avoided in trading foreign currency. Results that are in between these two numbers should be compensated with effective stop losses and highly positive return-to-drawdown ratio.
The average of how much you could win on each trade, over the lifespan of the Expert Advisor; (Accuracy x Average Win) / [(1 - Accuracy) x Average Loss]. When comparing expectancy between forex EAs, it is important to take under consideration the average amount of trades placed within the monitored time period. Additionally, you should consider the nature of the strategy that the forex trading bot is using. A Scalping EA comparing to a Trend EA for instance, would produce different results).
This is the most obvious of statistics; gross profit / gross loss ratio. If it is less than 1 you should be looking for another Expert Advisor. Results between 1.3 and 1.8 will need to be supported by an additional fx trading strategy as backup to each other.
HOW WE MADE OUR SELECTION
Initially, we created a list of Expert Advisors that have published verified results through an independent source (e.g. myfxbook) or have been tested by an independent, established authority (e.g. forexpeacearmy). We continued with filtering those that have produced successful, verified results on real accounts for a respectable time period and until today. Having filtered this metadata enables Top Forex Rebates to present you only with Expert Advisors that are potentially profitable with different forex brokers. We currently accommodate Breakout EAs, Scalping EAs and Trend EAs for the MT4. Please click on the website menu to view the forex robots by category and to be enabled to compare their features.
It is highly recommended to use a VPS Hosting Service as interruptions and disconnections can significantly hinder an Expert Advisor’s performance.