What are the benefits and drawbacks of employing automated trading systems in the forex market, such as forex robots or expert advisors? What is the dependability and effectiveness of these strategies in delivering consistent returns for traders?
drawbacks of employing automated trading systems
- Thread starter Oli_jackson
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Great question... Many of drawbacks are mentioned elsewhere, such as low adaptability with poor consistency of returns over time. EAs also encourage novices into risky systems such as martingale. However, one benefit when using of my own EA is encourages a more disciplined and unemotional approach to trading. Unlike many I wrote my EA to trade my strategy rather than have some 'secret formula'. 🙂
You are my kind experienced friend 🙂
Well, I don't know how to right my own EA, so how and where can I find a reliable and effective EA? What's your suggestion?
Thank you for your kind words. You need to know what you want from an EA. The MT4/MT5 site, if you use MetaTrader, has a codebase section with free indicators and EAs with source code. You should pick something with a high star rating that trades on some simple rules like SMAs. Run that in Tester and display the Chart from tester to see the buying and selling decisions. Only through extensive testing on different periods (and that's fun by the way) can you evaluate reliability. I would stick with one currency pair only. But be prepared to spend a fair time doing this. I hope that helps.
Thank you for your advice. I think before that i should spend some time learning about EAs, and how they work and how to test them and etc., etc. Somehow it sounds fun. I'll check it out. Do you know any sources for learning about EAs?
You asking about programming in the language of your platform and that's a reasonable size task (even for someone with a programming background). Here's one reference from the MetaTrader site: https://book.mql4.com/
Oh not actually. I don't want to learn how to code EAs. I just like to know how things work and that's why I asked for sources, but you are helpful as always.
