Many of the EAs on the market have proprietary trading logic which is understandable for a commercial product. You don’t want to publish competitive details. These EAs should provide some knowledge of the general strategy, however, to let traders understand their approach.

Market timing is a good example of understanding trading logic. It is extremely difficult to predict the timing of market moves. Trading logic says that this is a futile activity. Logic says that the productive thing to do is to follow the market action and to take advantage of it where you can. Your EA must communicate a general approach to engaging the market action.

Emotional trading is another performance facet that goes against trading logic. Emotional intervention will kill your trading plans. You have to trade the facts and in isolation (away from outside influence). Trading logic (of whatever the details happen to be) will prevail if the two preceding conditions are met.

A thorough understanding of the general approach taken by a proprietary expert advisor also allows the trader to assess the trading logic of each trade in terms of risk. Traders must understand the risk/reward equation to determine if an expert advisor takes unnecessarily risky trades or generally high probability successful trades. A thorough understanding of trading logic risk management is another requirement of a good EA.

As it turns out there is a strong expert advisor on the market whose very successful live trading performance over the past few months validate our understanding of its trading logic. It gives us great confidence that it will continue to perform and be very profitable for our team. Learn more by using this trading logic link.

Regards,

Colon

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The Original Post is Located Here: The Importance of Trading Logic When Evaluating An Expert Advisor

The PointBreak Expert Advisor is strong on strategy transparency.  It is also strong on helping you manage your risk for any trade.  It allows you to set a low, medium, or aggressive setting on your trading positions.  This means that you can manage the exposure to risk of loss of money on any trade.

Super trader Marty Schwartz once said “”I’m more concerned about controlling the downside. Learn to take the losses. The most important thing about making money is not to let your losses get out of hand.”  This is so true about trading Forex.

The PointBreak Expert Advisor is a trend following system with an an excellent record of success in forward testing.  It is used on the Metatrader4 paltform and offers a 100% guarantee.

The bottom line benefit for this system is that it makes money…It’s up 243% in live trading since October 2007.

In these bad economic times you need to have more than one iron in the fire.  Add that iron by evaluating the PointBreak Expert Advisor.

Regards,

Colon

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The Original Post is Located Here: PointBreak Expert Advisor

I liked the implications of the back testing results.  It has a pretty positive slope on the equity curve which makes it definitely worth evaluating further.

We investigated this EA for performance and it was a little choppy at first but it stabilized and has had five out of seven winners so far. If you think you would like to check it out for yourself click here for the information page. View the full performance statement for details.

Regards,

Colon

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The Original Post is Located Here: EA Shark 4.0 Expert Advisor

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

The Original Post is Located Here: Evaluating Expert Advisors

We checked out the claims and for all intents and purposes it is apparently true.  Now what we also discovered is that there were some caveats.  The older version of the software had a tendency to string together rather long losing periods but recent upgrades have improved the performance significantly.

It’s ratio of winning trades to losing trades is 11 to 1 with forward testing.  The backward testing on historical data consistently has produced winning trades in the last four out of five years.  I always drool over the results of back testing of some systems because of the possibilities but experience dictates that it only shows potential.

You have to test this system yourself to have any confidence.  My confidence is growing more and more with this program because it’s giving great results.

Happy Trading!

Colon

The Original Post is Located Here: Forex Tracer – The Latest Version