Some Advice On Buying Forex EA

Filed Under (Journal) by Casey on 13-08-2008

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After writing on the article, The Major Dilemma with Forex EA . Here are some advices if one is looking into purchasing a forex EA on the market. Even though I have only been involve with buying Forex EA for a month or so but my experiences with HYIP actually does come into play somewhat with buying a forex EA system.

There are two very important to look out for when buying a forex EA
1.    Back testing record
2.    Forward result

Without these two proofs, it is very likely that you might be buying an inferior EA. Of course these results or record can be manipulated. Do take note, as to when the back testing record starts.

Some system seller will tweak the settings to suit a certain market condition period and that is indirectly a way to scam (to put it crudely) the buyers.

MetaTraders offers history data from 1999. So to prove that a system is working well on all assumed market conditions, then the back testing record must show result from 1999 up to date.

If not, then I think you should not even think about that EA.

Trust me. I have tested a few…. In their sales letter or websites, they will show great result or even forward result within a specific time period. Say from last month till last week. These so call forward test results are posted on their website to entice willing buyers.

Don’t fall for it…. If you are able to contact the seller, do ask them for access to their Live Account as an ‘Investors’. It will show you how well the EA is performing.

Forex broker who uses MetaTraders platform do allows that sort of ‘Investors’ access. You can view their trading record, scrutinize each and every trade to see if the result is as per their sales website but you can’t tweak their system or trade their account. You only have access to just view what is happening to their live account.

For one thing, most system sellers say, please use the system in ‘Demo’ account first…. I mean… what the heck?

If the seller is so confident about their system, then these sellers should allow prospective buyers to view their Live account and then if the buyers want to trade on ‘Demo’ account to see if it is consistent than the seller should advice to trade on ‘Demo’ account first….

Forget the sales letter… go straight to the proof….

Most good forex EA are not cheap and most good forex EA does not come with a money bank guarantee….

So use prudence and due diligences…

Hehehe… sounds like HYIP…

Or you can do a simple search ‘Forex EA’ review/scam and see if anything interesting issue pops up :)

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