There are many Expert Advisors (EA) on the market.  Some are junk and some are partial junk.  Unfortunately it’s sometimes hard to tell the difference between the good and the bad.   My rule is to look closely at the information provided that helps validate the performance.

If they only provide backtesting results then stay away from it.  Backtesting results always look good.  It’s called “curve fitting”.  It’s where you can keep tweaking the parameters to fit the known behavior of the markets to get the best results.  There is no promise of future performance by looking at past results.

Check to see if any forward testing was done on demo accounts.  Good results here offer a little more promise of better results.  Look at the length of the forward testing to make sure that period is long enough to ensure a valid result.

The best validator is to trade the EA real time on an actual account.  If your results are good over at least a 3 month period then you have the makings of a good EA system

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.