There are a tonne of Forex expert advisors on the internet today, in fact hundreds of them. It almost makes it impossible to identify the expert advisers that actually work. With so many choices and so many different Forex robots trading on multiple currency pairs there has to be a solution to identifying the right trading robot.
The first thing one must ask themselves when looking for a quality Forex expert advisor is, what type of past performance does the trading robot have? What type of trading accuracy are we dealing and which currency pairs does the trading robot trade on?
The largest mistake that most expert advisors make is trying to provide a solution or mathematical formula that works for every currency pair. It's simply not possible to have a Forex robot be an expert on each currency pair due to the fact that each pair has it's own patterns and daily ranges. Therefore when identifying a trading robot one of the first things we look for is an expert advisor that focuses on just one currency. Secondly we analyse it's past performance over the last five years. If the trading robot has performed well with minimal draw down and has sustained profit months, than we're half way there.
Next, we analyse the Forex robots money management. We've to ask ourselves, what was the maximum drawdown over the past five years? Anything with less than thirty percent draw down over the past five years is a definite positive. Another question we might ask ourselves is, does the trading system use a stop loss? Some trading systems won't use a stop loss and believe it or not can be very profitable. A system that doesn't use a stop loss has to have a trading accuracy of 80% or higher where the winners clearly out weight the losers by more than half in terms of dollars.
Finally, determine how much risk you're willing to take. Trading with an expert advisor or any system at that matter requires a bit of risk. If handled properly can be extremely profitable. Never use a trading robot without first testing it in a demo account. Only after the trading robot is able to sustain profits after three months should one consider using the trading system in a live account. Be sure to find a system that's an extremely high success rate, uses proper money management and has been thoroughly backed tested and you'll be sure to find yourself a winner.