Picking A Quality Forex Expert Advisor

There are a ton of Forex expert advisors on the internet today, in fact hundreds of them. It almost makes it impossible to identify the expert advisors that actually work. With so many choices and so many different Forex trading systems on multiple currency pairs there has to be a solution to identifying the right trading robot.

The first thing one must ask themselves when looking for a quality Forex trading system is, what type of past performance does the trading robot have? What type of trading accuracy are we dealing with and which currency pairs does the trading robot trade on?

The biggest mistake that most expert advisors make is trying to provide a solution or mathematical formula that works for every currency pair. Most Forex systems fail in the fact that they try to become an expert on every single currerncy pair. It's simply not possible for each Forex robot to understand every single pair due to the unique patterns and daily ranges of each pair. Therefore when identifying a trading robot one of the first things we look for is an expert advisor that focuses on just one currency. Secondly we analyze it's past performance over the last five years. If the trading robot has performed well with minimal drawdown and has sustained profitable months, than we are half way there.

Next we have to analyze the trading systems money management. Ask yourself, what was the maximum draw down for the past three years? Anything with less than thirty percent draw down over the past five years is a definite positive. Another question we might ask ourselves is, does the trading system use a stop loss? Some trading systems will not use a stop loss and believe it or not can be very profitable. A system that doesn't use a stop loss has to have a trading accuracy of 80% or higher where the winners clearly out weight the losers by more than half in terms of dollars.

Finally, determine how much risk you are willing to take. Using a a Forex expert advisor does come with some degree of risk, yet if we treat our account properly and use the robot the way it was designed, they can be extremely profitable. Never use a trading program without first testing it in a demo account. Only after the trading robot is able to sustain profits after three months should one consider using the trading system in a live account. Be sure to find a system that has an extremely high success rate, uses proper money management and has been thoroughly back tested and you will be sure to find yourself a winner.