Forex trading opens up huge opportunities for traders but, at the same time, contains certain risks. The best Forex Robots can help to significantly increase profits and minimize risks, but only if they are chosen correctly. If they match your trading style, chosen strategy, and acceptable risk tolerance, you get a reliable assistant who will implement your ideas tirelessly and without demanding a reward. But to choose the best EA Forex robot 2023, you need to understand by what criteria they need to be compared and according to what scale they should be evaluated. Read this article for expert opinions on how to narrow down your search for the perfect Forex Expert Advisor (EA) and choose the one that best suits your needs.
Forex Robots Selection Rules
There are a few general principles for making good choices that are important to know before making a final decision:
Stick to the Golden Mean
Some traders tend to buy the most profitable robots, thinking that this is the main indicator when evaluating automated assistants. However, here, the dependence is the same as with leverage: its use significantly increases profits but also contains potentially large losses.
It is the same with robots: the more profit they can bring to a trader, the more risk they comprise. Therefore, if you have not yet mastered risk management to perfection, it is better to choose robots that give a stable result, even if not the highest.
Free Robot Can Be Trusted Only with Virtual Money
Many developers offer free versions of trading robots with truncated functionality, but some traders think that this will be enough. And thus, they deprive themselves of the benefits for which these robots were created — maximizing profits while minimizing all routine work. Free robots are often created as promos and serve as bait rather than a rod with which to catch a fish. And if you prefer a free robot with narrow functionality, you simply fool yourself because instead, you could use an inexpensive but much more efficient robot with a wide range of functions.
Even the Most Advanced and Praised Robot Must Be Tested
Ideas that work well in one case may not work efficiently in another. Therefore, you need to listen to the opinions of other people, but before using the robot for trading in a real situation, it is better to test it in the Demo version provided by responsible manufacturers. Also, do not neglect the strategy tester, which will reveal the potential of the selected EA. And when you switch to testing it already on a real account, use a small deposit for the first time to guarantee the safety of funds.
How to Start Evaluating Forex Robots
Before you start evaluating and making a decision on buying a Forex robot, it is advisable to reflect on your own trading style, the market conditions in which you work, etc., because there are no perfect robots for all occasions. And if the robot shows good results with low market volatility, in conditions of instability, it may not provide the required high reactivity and, therefore, will lead its user to losses.
Therefore, the results of past performance must be studied, but they do not guarantee the same high performance in the future if market conditions have changed.
The same goes for trading style. If other traders admire some Forex EA, this does not necessarily mean that, in your case, it will give brilliant results. For example, if they are prone to aggressive trading, and you are not, you should not rely on the robots recommended by these traders.
What Factors Should Be Analyzed When Comparing Forex Robots
Track Record
- Forex robots can be sold with an actual performance record that shows their success over the past few years or the time they have been in existence.
- But often, such data is not provided by the supplier, but rather simulated performance results are offered. In this case, you will not see real live trading statistics, and therefore, you should trust them with a great deal of caution.
- The worst option was fake track records when all the data were simply rigged for the software to be sold to gullible consumers. Therefore, in addition to tracking records, always check the supplier’s license and feedbacks on the site.
Equity Curve Chart
Unless you are a trader who feels confident in risky situations, it is important to choose a robot with a smooth upward equity curve. If it is bumpy and rather resembles the teeth of a shark or another predatory animal, you have a volatile robot that does not give stable results. This does not mean that it cannot be used at all, but it can be successfully managed only with a sufficient degree of professionalism.
Profit Ratios
Since the expert advisor not only earns money for the trader who uses it but also periodically loses funds, this indicator is very important. It shows how much more the robot earns than it loses. This coefficient is calculated according to a simple rule: Gross profit (the sum of all profits from the operation of the robot)/gross loss (the sum of all losses from the operation of the robot).
- The higher this ratio, the more profit an automated assistant can bring.
- If it is equal to 1, you lose as much as you earn.
- And if it is less than 1, the loss will be higher than the profit. Wasting your time on robots with a coefficient of 1 or less does not make any sense.
Maximum Drawdown or Loss
This is also an essential indicator, especially for those who risk big money, because it shows the maximum recorded loss that this robot brought when it was exploited by other traders. It is expressed as a percentage, showing what percentage of the deposit on the trading account you can lose in the event of a drawdown.
The Average Drawdown
If the previous indicator points out how much you risk one time in case of a maximum drawdown, this one reflects the results over a long time of robot exploitation. To calculate it, the percentages of all registered drawdowns are added up and divided by their total number.
Drawdown Recovery
This is an ambiguous but very useful indicator. It shows how quickly the robot can recover from a drawdown and start producing profits instead of losses. Common sense says that the sooner EA can manage it, the better.
However, only highly volatile robots recover instantly, which is why their equity curve chart looks oscillating. Robots that are more stable in execution are slower when exiting a drawdown. Therefore, you must decide what is more important for you — the speed of drawdown recovery or low volatility.
Possibility of Technical Support and Updates
Good development companies give a guarantee for their products from 1 to 3 months and the possibility of returning the robot in case of poor performance that does not reach the promised. They also provide:
- technical support in case of any problems with their use;
- regular updates that allow you to take into account changes in the market situation;
- discounts on the purchase of their other products.
Robustness
It is possible to evaluate the stability of the results only on a sufficiently long time scale. Therefore, pay attention to the total trades that the robot has made to date. For example, if a manufacturer says that the average drawdown level is 7.5%, ask for what time this data was obtained. If in 2.5 years, then they can be trusted, but if in 2.5 months, then there is no guarantee that this figure will not increase sharply in the near future.
Where to Find the Most Comprehensive Robot Analysis for Comparison
Experts carefully study and evaluate all the latest software that makes life easier for traders. They carefully explore the characteristics of each robot and even test them on their accounts. If you want to keep up to date with all the innovations in this area and the best Forex robots for different trading styles, visit the ForexStore website. Here, you will find a comprehensive analysis of the best EAs according to experts and users. By carefully scrutinizing and comparing them, you will find the ideal option that will help take your trading to a qualitatively new level.
When comparing and evaluating Forex robots, statistics are essential. It must be given the main attention, but do not forget to test the capabilities of the robot in the Demo version. Study the statistics critically: if you see brilliant indicators, pay attention to the period for which the data is presented. If it is less than a year, then it is better to choose a robot with a more modest performance but with a longer history of trading in real conditions. In order not to make a mistake in choosing, study detailed analysis from professionals on ForexStore and discuss your choice in specialized communities. The more information you collect, the more objective your assessment will be.
