Does anyone trust EA`s

Just wondering if is anyone out there thats trusting EAs and why? What`s your experience using one?

I trust EA’s - I don’t trust people who write them :slight_smile:
EA is an application, which manages your hard earned money and developers are free from any responsibility in case of errors/issues etc. So, if I would like to leave my money in someones hands - it would be a regulated fund manager.

I won’t use any EA which I have not written myself (or at least have view into source code to review how EXACTLY it works and, if there are any blind spots/errors/traps).

Would you buy a car built in someones backyard and put your kids on the backseat? :wink:

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My sentiments exactly. One of the most fundamental reasons I have a big interest in Forex is because I don’t want the cop out of “blaming someone else” for my misfortunes. I may not be as clever as those who have studied the subject of investment far more than I, but I do believe that true wealth can only come to those who create and maintain it themselves. As my wife has often said, the only person she really trusts is herself, and even then, not 100%. Love her to death.

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I was a new trader back then, I bought a lot of EAs but now I have given up and only have one left to use. I feel it’s a waste of money

I personally haven’t used EA’s in my trading. :thinking: But I’ve seen them work for some people here so I guess I don’t completely distrust them. :thinking: Just have to be very careful with the EAs you decide to use though.

It’s a bit simplistic to be distrustful of ALL Algorithm developers, but it’s the sentiment I would expect in a beginners forum.

EA Developers (Sellers) that supply a product with a set logic know full well that it will only work until… it doesn’t. As long as the average easy come easy go joe continues his quest for the Holy Grail they have a market to sell into.

I code, so I design my own EA’s and Indicators…. Many which I have displayed along with the strategies behind them in BP over the last few years.

EA’s are generally not for the lazy trader because the successful algorithms are not set and forget like most traders are lead to believe.

A profitable “safe” EA needs to developed, tweaked and constantly adjusted to market conditions on a regular basis, just as market behaviour is constantly evolving.

Trending logic will not be successful in a ranging market, same as a ranging algorithm will destroy an account in a trending environment.

So, you either run multiple EA’s that detect market behaviour and stop and start (usually triggered by volatility, ATR etc.) depending on the condition the traded instrument is applied to.

Just buying an EA and letting it lose on a live account is a guaranteed recipe for disaster.

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Or maybe set and forget strategies/algos are very difficult to endure,
like staying under highs for many months/years.

EA that you can buy are designed to impress noobs with smooth backtests.

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Back then, I also bought a lot of EAs, these EAs all had to pay with money. I thought with money I would get a good EA, but no it didn’t bring me any profit. It’s a waste to think about it

EAs were my route into forex and I’ve since stopped using them in favour of trading myself and found personally I do better trading that way. My experience of EAs is that I had to constantly tinker with risk settings and the time being spent could have been spent trading manually.

Unfortunately, other than signals or courses, they are one of the only products really sellable on mass in this industry…

I don’t believe (most) vendors deliberately try to sell a rubbish EA… Strategies and Algos just have a shelf life in these Markets. Some EA’s take months of development and they do prove reasonably successful. Some even after months of coding, tweaking and backtesting just hit a brick wall and you realise it’s not wasting more time and resources on… No different to any product development.

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Using EAs is better than discretionary trading IMO, but it is hard and I would advise coding your own EA.

However, the problem is that most people don’t know what they’re doing. They mash indicators together or trade PA or something, but they don’t know why. Most people don’t know why something is working or not. They don’t know their edge or if they have it. They don’t know what about markets they’re trying to exploit. Is it trend trading, seasonality, daily bias, weekly bias, mean reversion, overnight gaps? First you need to have an idea what you’re trying to achive.
And then we come to the second problem. ALL STRATEGIES FAIL sooner or later. And some come back and start working again. What you should do is test if your strategy works on other markets and then trade it on those markets at the same time. Preferably on markets that aren’t correlated. Then you need to make more uncorrelated strategies and trade it on even more markets so that you make a portfolio of multiple strategies across different symbols. So that when some strategies fail, others protect you from dd.
And don’t overcomplicate it, High[1]>High[3] and the sort are simple but effective strategies. Add a regime filter and you’re golden.
People need to take trading seriously, read as many books about it as you can, get ideas from everywhere and maybe, just maybe, you will make it. Otherwise you will find nothing but despair.

Yes, I trust EAs! Especially those I wrote and which I have tested thoroughly. :slight_smile:
Before that, I bought EAs, and it feels more like searching for the white sheep among the black ones. Or find the hay in a bunch of needles! :smiley:
Most people are disappointed about EAs, because they only ran 1 EA. And normally EAs make loss and profit (don’t take EAs with a straight curve up to the millions account! They’re faked!) ! When you start in a period where you’re EA makes loss, then you’re understandably disappointed and throw away this thing… but it might make profit next month when the conditions are better for this EA.

So, what can you do to compensate the frustrating periods? Build a portfolio of 5, 10, 20 or even 30 EAs! If one or two EAs of this bunch have a loosing condition, the other EAs support with their profit.
That’s the strategy with running EAs. More diversification between your EAs (different strategies, different timeframes, different pairs).

So, as you can see: Yes, I trust EAs. Strict logic, no emotions! :slight_smile:

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yeah, I totally agree with u. when lost by EA ppl become disappointed, like that they never lose money in forex. but have to understood loss is part of the job. The manual trader can be emotional or greedy but Ea never. just proper setup & EA like to do what’s its need to do.

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Hello, It actually depends on how ea works (strategy and acccount management) and who’s the developer behind it. If you want to use some EA, make sure you have a contact with him/her. And always ask for a Backtest of atleast one year with a modelling quality of 99.9% for mo accurate data.

By the way, I am also a developer. If you don’t mind you can check mine. FX Prime EA.

Currently my ea has a setup of M15 Timeframe in GBP/USD Pair.
I will attached below the backtest result.