There are many EAs available to forex traders. It’s not just a matter of money but also one of your limited time which means that you need to select the best to try out for yourself. So how do you know where to start? In this article I’ll show you the important criteria that you every good forex bot needs to measure up against and then you’ll be able to determine what is the best forex expert advisor for yourself.
The vast majority of bots are only good for EURUSD. Now given that this is the currency pair that has the most volume and liquidity then this is no bad thing. You may not even be looking for opportunities elsewhere.
A few EAs (some of which are excellent) feature support for multiple currencies. Usually it is EURUSD plus one or two other majors.
When a bot has a “low drawdown”, it means that you are making many small but profitable trades that all add up to a nicer, bigger profit.
The opposite of this would be an EA that makes widely swinging results, some profits and some losses, both big and small. This is way too risky and is no way to trade so avoid robots with high drawdowns.
Any robot worth its salt will show some level of backtesting data. Normally these backtests are run through Metatrader and a nice report is made showing you various data.
A few bots these days are now starting to offer live data as proof of how good they are. This is superior to backtest results because a bot can be tweaked many times until it shows a profit in history but a live test cannot be faked.