I’ve played with a few demo accounts and I’m wanting to go live, but I have a few simple questions.
Is it worth using an EA/bot, and if so are their any recommendations? Alot of the reviews contradict each other so I wonder if the reviews are of any relevance.
I see everywhere advertising support for MT4, but I notice MT5 is available. Does MT5 work with everything MT4 did, and has anyone used 5 yet and can you offer any feedback on it?
Lastly, I’m in the UK and looking for a VPS. I’ve heard of a few names, and read reviews and switchlink.co.u
and forexcloud.co.uk are two names that have popped up.
Anyone used them, or have any other recommendations. Obviously, support must be good and availability!
Welcome to the forex world! These are great questions and would like to help give you some answers.
I think the vast amount of us can agree that most EA’s out there do not work. I’m not going to go into specifics on which ones, but I would concentrate on looking at how they trade and the money management behind them. For example, EA’s that do not use stops are just crazy in my opinion. We live in a world where these currency markets have seen extreme moves such as the price of silver where price has gone up and fell over $10 a day. These movements are extreme where in the past silver use to move maybe 20 cents in a day? So if an EA traded silver and didn’t use stops you could have lost your entire account. This is just one example, but more recently moves on the usdjpy and other currency pairs that have had interventions in the recent weeks could have easily destroyed your account.
Other EA’s you might want to watch for is to see if they “double up” on losing trades which is known as a martingale type betting strategy. It gives you a HIGH win ratio but eventually costs your entire account. If you see a smooth EA chart with price going up and up and up, you can bet that it’s probably a martingale strategy.
As for MT4 or MT5, there are a lot of “big” differences from how mql4 code has been rewritten to mql5 but also in the functionality. Most people use MT4 and you will still see a lot of people using it because of the tools available. But if you use MT4, or MT5 or Ninjatrader or your brokers own platform, none of these will make you successful, its just a way of putting in orders, you can use any platform you want for charting usually with a demo account.
As for a VPS, I would recommend not using one until your profitable in your trading. Most people use a VPS for an EA, but then again you have to ask yourself if someone is selling something that actually works for $97. Regardless I would highly recommend that if trading will cost you money (via use of a VPS) then make the money first in the forex to pay for the VPS. I think it’s a great rule of thumb. Just like I would never suggest someone to buy 5 monitors before they even got profitable, you should be able to be profitable by using a 14” laptop screen Just trying to save you the cash when it’s not really needed to be spent yet. I think your doing great asking these questions, its really how people learn and hopefully from others.
If you do feel it is needed, look for a broker that offers a free VPS when you open an account with them. This might be another way to offset your cost until you are profitably trading. Most if not all traders will at least blow up one account, so I’m just saying that you might not wish to invest a lot of your hard earned money until you have proven results.
I hope that helps, please let me know if it does or not and if you have any more questions.
Can bots be profitable, yes. But for the majority of people that use them they are just looking for the get rich quick scheme. There are people who are very successful with bots. But You should very well know how to program number one. And either created your own bot or have a bot that you completely understand and can modify yourself. Then I would stay away, any blackbox system is doomed to fail. The markets are changing everyday these days Have seen massive amount or volatility. If you didn’t adjust your bot or just stay out because the market falls outside of your bots optimum market conditions then chances are you lost money. Or even were completely wiped out. Personally I trade a discretionary system and have no need for indicators oscillators or EAs in that sense. Nor have I used bots for live accounts, so take it with a grain of salt.