Automated Expert Advisors (EAs) Are They Worth Considering?

Posted on November 4, 2009
Filed Under Forex | Leave a Comment

If you are familiar with Forex, I bet this is one of those questions that got your brain juices running.

At the start of my trading career, I spent countless hours looking for what I believe would be a perfect Expert Advisor. One with small draw-downs, good returns and that could make consistent profit in any market conditions. To cut this story short I had set myself for a never ending quest. The word “holy-grail” simply does not exist in the Forex world and it took me a lot of time and a large amount of wasted cash to realize this fact.

Why are we so obsessed about Automated Expert Advisors?

Here are some of the benefits of Expert Advisors to the everyday trader:

- No stress

- No thinking involved

- More time to relax

- Easy to install and use

- Doesn’t require constant monitoring

- No thinking required

- No experience required

The above, outline the main points why traders seek the use of an Automated Expert Advisor. They do look attractive when put that way; however you should also consider the negative aspects as well.

There are thousands of automated Forex providers on the net nowadays. This number is increasing day by day and funnily enough they all seem to have insane winning rate some even with a 100% success rate (hmmm). The common sales pitches used by those providers are:

- Make money on autopilot – No experience required

- No experience needed- start making money in minutes

- Make $1000 on autopilot every day

- Plug in and make money in a matter of minutes

If half of the above were true I would be sitting on a nice beach as we speak enjoying the sun and sipping on a cocktail, however, here I am sharing with you my experiences about automated expert advisors. Systems that promise to make you thousands overnight or 500%+ return per month are simply B.S. You are more likely to lose than actually make money.

I do hope you are lucky enough to have come across this article before making any hasty decisions in purchasing a Forex Robot that promises to make you 500%+ return a month. If such a robot existed all the major banks and financial institutions would sack their FX traders and use those systems instead. They will save a colossal amount of money on man power and on top of it all will be making astounding returns every month.

Well, the truth is that Banks and the other major institutions rely solely on their experience FX traders to make money on the Forex market. Compared to FX Traders, automated robots do not take into account the changes in market conditions, they simply follow a set of rules whatever the market throws as them. The Forex market is so unpredictable and volatile that trading heuristics do not apply most of the time.

Forex robots are many a time designed my mathematicians or engineers who believe they cracked the code to Forex trading. Well no offence to them but if they have already cracked the code, why am I still not profitable. You see the nature of the Forex market is such that changes in market conditions cannot be predicted. This is due to news, catastrophes, political changes etc Do you believe those robots can take all those changes into account?

Here are some of the points to take into account when investing in a Forex Robot:

- Is the developer a successful Forex Trader (make sure he is well-known and has authority in the Forex arena)

- How long has the system been in use? (at least 2 years)

- How long has the system been in use?(2 years minimum)

- Monthly ROI

- Maximum draw-down.

If all the above questions are ticked then you got yourself a potential winner.

I have spent a large sum of money over the years trying all sorts of Forex robots. The result was that I lost as much hair as I lost money! Quite frankly, I was quite disgusted with all those Experts advisors until the day I came across a guy named Ashkan Bolour.

At this point I had no clue who this guy was, so after some research I came to know that he was a highly respected and successful Forex trader. He had featured in many trading shows and books and was a veteran money manager. He had an automated system that had good reviews and which seemed fairly priced. So I decided to give it a shot.

All my skepticism was left behind when I started seeing the power of his system. My profits were consistent and my account was growing gradually. The returns were realistic and the draw-downs low. If you are looking for a good system with decent monthly returns, do yourself a favor and try Ashkan Bolour’s system, the FXprofit Mountain. You may fall in love with this robot.

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