How to buy Forex Robot

Is it a good idea to buy “Forex Expert Advisor”? – Read this before you even think about buying Forex EA

 

Forex Robot – it’s Automated Forex trading software. Other names – Forex EA, Forex Expert Advisors. The Internet is overfull of offers to buy a “super mega profitable” Forex Expert Advisor (EA). How to find magic EA yielding profits to you in that case? Does it make sense to spend own money on EAs promising high profits?

 

How to Buy Forex EA?

 

No suckers, no profits

 

99,9% of Forex robots that people try to sell to you over the Internet is 100% trash. Yes, you heard right. It is the industry of scam, where you can see nice pictures and hear promises of earning millions of dollars for only $100 … Strange but true: there will be no end to trusting ninnies, so it allows the industry to stay afloat.

Why do people sell profitable Forex EAs?

You can hear such an argument very often: “Why to sell EA, if it yields you nice profits?”
There is obviously no need to do it. However … Assuming that EA makes 3-5% profit monthly. I tell you seriously that it’s a good result. Author of the robot has $10,000: he/she opens a trading account and runs the robot on it. How much money he/she will make? The answer is $300-500 per month. Not bad. But how much money the EA’s author can earn, if the robot sells, for example, for $100 per copy? Having sold 10 copies per month, he/she would make $1,000 without risking own capital, which he/she might not have.
What If the EA is based on martingale? Then it could mean that he/she can lose own deposit at any time. If this is the case, it becomes more evident why he/she is motivated to sell the robot instead of running it on own account.

10 keys to successful trading by “martingale” Forex EA

There is another category of “demo Holy Grail systems”, i.e. the EAs that earn profits on demo accounts only and lose money on real accounts. Of course, this kind of software is more profitably to sell, since one can’t withdraw demo money from a demo account
So, we have found out that most EAs available for sale are a junk, but sometimes there are examples worth of buying. How to differ them from the junk?

How to identify a good Forex EA?

Below are the tips on how to figure out, if one or another EA is a good buy:

1. Backtests

How to buy Forex robot - backtest

 

It is the most doubtful and controversial part of evaluation of trading robot perspectives. Backtest reports can be easily faked. There were even such cases, where scammers built a function of price history reading in a trading robot so that it could show perfect results due to the fact that it was aware of further price moves beforehand.
The only advice I can give you in this case is that equity curve must look rather smooth on backtest reports and a modeling quality of the backtests must be equal to 99%.

2. Monitoring

How to buy Forex robot myfxbook

Real account monitoring represents an integral part of evaluation of trading robot capabilities. If a monitoring report for a robot is not provided, feel free to close the robot’s webpage. You should also check out that it is a monitoring of a real account, but not of a demo one. Alos look at broker used in myfxbook statement. Sometimes Forex robot sellers use scam brokers. It’s not good signal for buy such forex EA.

See our Forex Brokers List Comparison table

Unfortunately, monitoring reports can also be faked. There are ways how to verify its validity, but these verifications can also be bypassed, if desired.

3. Reviews

read review beforex buy Forex robot

You certainly shouldn’t pay attention to reviews on webpage selling a trading robot, since they are written by student freelancers for a couple of dollars.
It makes sense to take notice of discussions of EAs on online forums and reputable website. For example here >> 🙂 . However, sometimes even its users have some problems with reality perception

Return on investment

Assuming that you believe that a trading robot deserves your attention, so you are planning to buy it. At that, it is important to remember about such a criterion like return on investment (ROI).
Suppose that EA is offered for $200 and shows an average monthly profit of 5% according to a real account monitoring report. Therefore, you need to have a deposit of, at least, $1,350 to pay back your investments in the robot over 3 months (it is a recommended period allowing for the market volatility and the fact that you need to make money not only to cover costs of the EA, but also to earn your living). Can you afford to have such a deposit for trading the EA only? If yes, then you can buy the soft. If no, you should look for other options.

All that glitters is not gold

 

So, what kind of conclusions can we draw about it? It is certainly not worth buying into advertisement of magic EAs. You can buy Forex  EA on your hard-earned money, if only you have EAs-related experience, knowledge of the case and your supposed deposit allows paying back costs of the EA.

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