How to avoid Scam on MQL5 Market?

Good morning, gentlemen.
I was thinking about buying an EA on the MQL market. I did some tests and downloaded a few things until I found THE PERFECT EA!
But it was too perfect… why would someone be selling something so incredible that never loses money and only makes money, regardless of the deadline or testing period? I decided to research the seller’s background and found SEVERAL descriptions of how he scams people by creating fake results and creating robots that will give you fake results in tests and ruin your real account.
I won’t post the seller’s name because I’m sure a lot of people will be tempted to buy the products.

But the question is, how do you know if the product is really reliable if we can’t trust the backtest? How do you evaluate whether an EA is worth buying or not?

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You can’t, reliably.

But you don’t need to, either. If it “really worked,” why would anyone be selling it?

If you had created the goose that laid the golden eggs, which would you sell: the eggs or the goose?

It’s never been easier than it is now, to raise capital for trading, if you have a genuine, safe, reliable edge over the markets.

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I agree and disagree, alot of countries specially the ones where dollar is high like here in Brasil,It becomes much more difficult to save dollars to invest in the market. If a person learned to program and had some ideas that work in EA, it could be an income until they have their own capital, right?

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They’d design one that could pass a futures prop-firm test, and be trading $1,000,000 after three months, not be struggling to sell an EA for $500 or whatever.

The best thing is to learn how to programme an EA. Learn the techniques and what you need to consider. It’s a long and rocky road, but in the end it’s worth persevering. At least that’s what it ended up being for me.

People wants to “perfect” equity, then crying because it is fake, people get what they want “dreams”. I posted EA which is very stable but low return, I think maybe 5 users download it? even if you want to give something good for free, people doesn’t want it.

can you share it ? I didn’t saw
I’m trying to build one mine but i’m still using chatgpt, I’m really struggling on having time to learn coding, and depending on AI kinda sucks since I don’t understand whats going on

i think the equity problem you saying is because most of people are using prop firms today, they want something faster to pass the challenges

People just don’t seem to understand that the time to try to automate your trading with an EA is “after” you can trade successfully (i.e steadily, profitably and safely) not “before”, or “as a way of trying to”!! :roll_eyes:

I suppose aspiring traders get the trading robots they deserve, really, more or less: as long as people are naïve enough to spend money on them, there won’t be any shortage of people willing to promote and market them.

People typically lose money through forex-trading when they look for short-cuts, wanting to avoid the practice, education, patience and discipline that are actually necessary to turn it into a profitable activity.

In theory there could be successful EA’s, but the practical reality is that if one ever were, it would never be marketed as an affordable EA to the general public. There are valid and good reasons for this, but many people are a bit too naïve to think them through, and some are opinionated enough not even to be willing to listen to them, easy though they are to understand.

Big trading institutions employ highly-paid experts to assess such software, so anyone who had one that actually worked, safely and robustly, would make a fortunes from it by that route, without needing to advertise it online as an EA. Example: in the mid-1990’s Crédit Suisse leased a trading robot from the US software engineers, mathematicians, market analysts and traders who had created it, for $100,000 per month basic, plus an ongoing profit-share - and other, similar institutions have made other, similar arrangements, since then, too. These things are common enough - and you don’t need to be Einstein or Hawking to understand that if they actually work, they’re obviously not being sold off on the MQL5 market for a few hundred dollars per copy!! :roll_eyes: :sweat_smile:

People want to get rich quick, without learning anything, without effort, without pain. Just like all the guys on Insta, YouTube and TikTok are selling them. But that’s not life! It’s all scam! I’m already trying to educate my immediate environment that trading is not something you just do and - wooosh - get rich! Even for an Algotrader like me! Unfortunately, I can’t convince everyone that it’s hard-won knowledge that makes you successful on the stock market.
That’s why people can’t tell the difference between a good EA (which of course also makes losses, but is robust and profitable overall) and a “dream” EA. Ultimately, it is always important to have proof of an EA on a live account. And over a longer period of time!

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I can’t fully agree with that, because I’m not an institution, bank or highly paid programmer and it still works.

But I agree with you that it is fundamental to familiarise yourself with the laws, rules and strategies of the stock market beforehand. Otherwise you won’t understand your own EAs and won’t know what to look out for!
That means a lot of reading, visiting forums such as this one and trading yourself - first demo then live.

that is why I don’t do it

Hi @BrunoBorelli, let me share you my experiences with EA. I also sells some of EA in MQL5 for fun.

How to define a good EA? It’s a tricky question. We never know until we buy it. Some developer use history reading to show their performance. This type of EA common when an EA run on MT4 and need kind of DLL to run.
So when you do backtesting, the EA will show you a super high win rate. The performance will be a straight linear. It can also parabolic line from 0 to millions of dollar within 1-5 years. But when you run on real account, you will have different result. At this time you will realized you are being scammed.

Base on my experiences, running an EA the most important part is Money Management (MM). The easiest part to implement MM is using Averaging methodology. A single entry strategy is difficult to implement. It takes many entry strategies to be profiting. For example , I run 8 single entry EAs for EURUSD to make profit 5-9% / months. While I need only 1 averaging EA to make profit 8-12% / month.

Base on above explanation, when you want to evaluate an EA, simple just try them. If the EA is real, you need to evaluate your financial condition. The best way is by looking at vendor’s live account if any. Look for the highest drawdown (DD) and profit each month. If you can afford the highest DD, then it’s worth a try. For example when you saw the highest DD in real account is 2000 USD, you need at least 3000 USD.

Here is one of the example that I watch closely. I am not using it, but some of my friends is using it.

The vendor provides hers live accounts, you can find it at MQL5 and myfxbook. She is quite transparent and honest to expose hers products.

Warning: I don’t know the vendor. I’m not saying the EA good. An EA can be profitable when you know how to use it, in particular the MM. :sweat_smile:

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hi @TYGMedia I think waka waka is bad example :wink:

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Hi @ProfesorPips, nice to have you here :smile:

Surely do :sweat_smile:. But at least we can monitor EA’s performance.
Last year, the EA almost stopped out. But the developer is honest, she didn’t cover it. Just let it run as it is. I hit huge DD, but finally all close profit.
One more thing hers provided signal 100% equal to my friends account. So I can say, it’s not scam. She is honest with all of the advantages and weaknesses.

As you can see the Waka’s stat … my friends who run the same EA have also the same stats.
Look at the Max Drawdown: 72.4% and Deposit load: 72.1%. :sweat_smile:

Note: you can compare with something Quantum. The backtest is so amazing no SL. When you run the EA, you will hit so many SL. Haven’t mention the live signal is quite different to real trading. :face_with_head_bandage:

1. (But unlikely): Ask the Seller if they could provide you with a 6-12 month historical P&L directly from their broker detailing the results of that EA.

2. (But unlikely): Ask the Seller to attend a video call where they share their screen and actually show the EA in action on their live account/demo. While displaying the EA on their live account/demo ask them to navigate to the “Account History” section and scroll through the P&L list.

3. Request a demo-version of the EA , and if provided, just use that for about a month and determine for yourself in real time if the EA is worth purchasing. Some sellers provide this option to give the prospect buyer a method to determine if the EA is worth the purchase.

4. If the Seller declines the offer to attend the video conference then it’s potentially a sure sign that they’re scamming because why wouldn’t you as a seller seize the opportunity to prove that your profitable EA does what you claim it does.

Side Note: If the EA has reviews appended to it, don’t deem it reliable as they could be artificially generated through paid services, giving off the impression that the EA boasts social proof when it doesn’t.

Best solution is to just learn the MQL language for yourself due to the fact the EA market has accumulated a bad rep for obvious reasons. If you’re able to code your own EA, you effectively circumvent any scams, you’re now open to a wealth of financial opportunity, and it is worth it. :end:

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Same here - we managed to maintain steady profit of around 5-12% per month with around 500$ on the balance, reducing the risks by withdrawing profits monthly.

Having tried over half a dozen of expert advisors on MQL5 market, I can only agree that you MUST understand how EA works and behaves in different markets (trending or ranging), as well as individual instruments. It’s also important to be able to test it every so often because market conditions change, and be able to update the code when necessary.

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