Forex expert advisors or automated day trading software, as they are commonly referred to have become increasingly popular both among professional traders as well as those with a regular job and trade forex part-time. Due to this demand in forex expert advisors there are literally thousands, if not more forex expert advisors available today. Some are free and can be found on forums, while some are paid. Forex expert advisors usually range from a few couple of dollars and can get very expensive as well. With so much of choice and perhaps noise, how does one go about choosing a best forex expert advisor? In this article, we offer some quick guidelines and checklist to help you choose one.
Check for compatibility
While there are many forex trading platforms out there, MT4 is probably one of the most widely used forex trading platform which is also free. If you happen to be one of those traders who trade on the MT4, then make sure that the EA you want to purchase or invest in is compatible with not just the current version of your MT4 platform but that you get support and updates for future MT4 platform upgrades as well.
How profitable is the Forex expert advisor
Ask yourself, how much; realistically are you expecting to make from trading a forex expert advisor. A good way to start is to look at your high street bank’s term deposit offers or saving account interest rates. Although these days banks don’t pay up much in terms of interest, having a realistic expectation of 5 – 10% returns quarterly is more than fair. Look for EA’s that can offer a stable profits or returns on a monthly basis that falls within this range
How consistent is the Forex expert advisor
The next step is to consider or evaluate the consistency of the expert advisor. Are the returns stable over a period of time and how big or small are the drawdowns during the forward testing and backward testing periods. This gives you a rough idea on how risky or stable a forex expert advisor will be when applied to your live trading account.
Has the EA been thoroughly tested?
Make sure to also find out about both back test and forward test results of the EA and compare the results to see if the EA’s results are as expected. Also consider which markets the EA was trading and how the general market conditions were during the testing period to get an idea on how the EA was trading during those periods.
Money back guarantee
Most EA’s would fail to check this point off their list, especially those EA that claim to make you rich overnight. Always purchase an EA that comes with a money back guarantee so in the worst case that the EA doesn’t perform as expected, you will at least get your money back.
Is there any such best forex expert advisor?
At the risk of boasting, the ForexFalcon EA checks all of the above points. Consistent in results, generating a 7% return monthly and stable in growing your trading account by keeping drawdowns to a minimum, the ForexFalcon EA works on the MT4 trading platform. It sells for $397 and comes with a 30 day money back guarantee. So in the event the EA doesn’t make you a profit in the first month of trading, you can claim a refund. The ForexFalcon EA trades 18 currency pairs with remarkable success. Learn more about the expert advisor here.