Expert Advisor – profit nowadays in trading as a professional
Expert Advisor is a powerful tool that we have nowadays in trading. This is a code-behind each strategy that allows us to trade fully automatically. Many students are writing us e-mails and sharing with us their experience. What we hear most of the time is that people are buying Expert Advisors, and they say they stopped working.
The truth is that the Expert Advisor doesn’t stop to work because it trades on predefined entry and exit conditions that it has in the code.
For example, if I modify any of the Expert Advisors that I have into my account, you will see in the code that there are exact rules for entry and exit. So, there is no way that this Expert Advisor will stop working. What happens is that the market is changing.
And here comes the big illusion where people think that when they buy an Expert Advisor, it will make them reach. Basically, they will not need to do any trading. They will not need to do any work, and this Expert Advisor will bring them constant profits.
Actually, this is not reality.
If I show you the Meta Quotes official website and I go to market, you will see there are so many Expert Advisors. Some are very cheap. Some are more expensive. Some are extremely expensive. I can say a thousand of dollars. But here all is commercial, guys.
The people are trying to sell their robots, their strategies which are very reasonable on nowadays markets. The idea is that you don’t have any guarantee if this Expert Advisor will make any profit for you or not. Most of the time, what the people see is that it makes some profit and then it starts losing.
One of the illusions is that when you buy an Expert Advisor, you see this perfect balance line on the backtest. And you can say “OK, this Expert Advisor didn’t lose for the last 2 years, I will expect it to continue making profits.”
The reality is actually that these Expert Advisors are over-optimized. As you know, each Expert Advisor can be optimized. If I go to the strategy tester, there is the optimization. And if I go to Expert properties, you will see that in the inputs we can optimize this strategy.
By using the Meta trader optimizer, I will be able actually to optimize the strategy.
And this means that I can find the best input for this strategy for the pretty find period. And if I leave it to step 1 most of the time, it will find exact properties. Or correct set up for the strategy and this will show us a high profit line.
Now let me take any of these strategies that I have on my screen, and I do a final test. I will click on start, and you will see that the results I’m having here are profitable. But I don’t know such an equity line which says there will be no losses. And this is another illusion that you will buy Expert Advisor, and they will tell you this Expert Advisor never had losses because this is merely impossible, guys.
Every strategy has profitable and losing trades.
When you see such a backtest on an Expert Advisor, this is more realistic, and this is not over-optimized strategy. And what happens most of the time when you place such over-optimize strategy with perfect backtest line? You will see that this strategy will start losing. Because it was over optimized for the tested period and the inputs are not robust enough. They are not stable enough to hold on the future Market data.
Now what we do in EA Forex Academy is actually to trade many Expert Advisors into one trading account. So, we don’t rely on one single Expert Advisor. This is very important, because as I have said the markets are changing.
In this account, I have the ten strategies from my Top 10 GBPUSD Expert Advisors course. And actually, to build this account I have created 60 Expert Advisors for the GBPUSD, and I have tested them.
The top 10 performers, the top 10 Expert Advisors I have separated into a different trading account. And I have provided these 10 Expert Advisors into my course. Now the idea is that we filter many strategies, and we select the best ones.
When the trader has 10 strategies into his collection:
- He doesn’t rely on one Expert Advisor profit.
- When any of the strategies is losing the others will be profiting. This way, we compensate the loss.
- By having 10 Expert Advisors, the trader can select the top 3, the top 5, or the top 1 Expert Advisor that is currently making a profit. And this is very important because once again the markets are changing.
The idea is that we trade these Expert Advisors simultaneously, and we followed their performance. And the trader can place on a separate account the Expert Advisors that are currently making a profit.
For example, if the top 3 Expert Advisors here are making profit currently, and we place them on a separate account. If any of this Expert Advisor goes to the 4th or to the 5th place any of the others will replace it and it will take its place.
What did we do?
We replace this Expert Advisor. And we will be still trading the ones that are currently making profits. Now, the whole process is described in many of our courses. I describe it very well into the classes:
- How to build hundreds of Forex strategies
- In the top 10 EURUSD strategies
- The top 10 GBPUSD Expert Advisors
- London New York and Tokyo algorithmic trading.
In this course, I have built a portfolio of Expert Advisors that are trading during the different Stock exchanges. I have currencies trading only on the London Stock Exchange. Another currency is trading on the New York Stock Exchange and other for the Asian market.
The idea is that we trade different Expert Advisors to profit on the various stock exchanges hours. So, we can catch the volatility there.
To summarize it, the idea is that we don’t rely on a single Expert Advisor, we trade many Expert Advisors to diversify risk and achieve better results, and we follow the process we:
- export the history data from our brokers
- generate 100 of strategies over this history data
- filter the strategies and export them as Expert Advisors. And we do this by strategy builders, so no programming skills are needed
- trade these Expert Advisors on a demo account
- separate the top performance on another account
- manage this account.
If any Expert Advisor starts losing, we will replace it with another one that we have already created, tested, and automated.
So, it’s not really the thing that you will buy one Expert Advisor, and you will leave it trading, and it will bring you consistent profits, there are no such Expert Advisors, guys, you need to do some work when you’re doing algorithmic trading.
And it’s not hard work. Just it’s the process that you need to follow and the process of managing many Expert Advisors into one account or another word saying we filter To find the best Expert Advisor for the current market conditions.
If you are looking to test trading with Expert Advisors, please, have a look at our course Automated Forex trading + 99 Expert Advisors. In this course, you will receive a new 99 EAs every new month in updates.
If you have any questions, please, write to me in our support FORUM. I will answer you as soon as possible.