You’ll often hear it said that profitable Forex expert advisors cannot possibly exist, because if they did then the big banks and hedge funds would just sack their trading teams and replace them with Forex EAs. This is a blatant lie that is told by people who don’t have the slightest understanding of how fund trading works. Profitable Forex expert advisors do exist, and there are very good reasons why banks and funds don’t use them to trade. By the end of this article, you’ll know why you have the opportunity with Forex EAs that the banks don’t want. Read this article to know everything about good expert advisors.
The Myth That Profitable Forex Expert Advisors Don’t Exist
Believe me, if the banks and hedge funds could replace their traders with software, they would in a heartbeat. The problem is, even the best Forex EAs cannot match the returns that professional Forex fund traders make. You might be thinking: “Hang on a minute, the banks and funds only make a 10-20% return per annum, while profitable Forex Expert Advisors can bring in 100% and upwards returns in a year.” Yes, but the key difference is that banks and funds have hundreds of millions of dollars to trade, while typically an individual Forex trader would have a few thousand dollars.
So what difference does it make? While the Forex markets may have the highest trading liquidity in the world, meaning that the market can absorb a few hundred contracts without a price shift, there’s still a limit to how many trades you can put on at any given time. That means that as an individual Forex trader, we can buy or sell a few contracts with no problems, but when the banks want to move thousands and even tens of thousands of contracts, then it takes a lot of skill and maneuvering on their part to get that done without getting a very bad price.
Cracking the Myth Of Expert Advisors
That’s why they don’t use Forex Expert Advisors, because there’s no way that they can get in and out of the trades like an individual Forex trader with small capital can. Once you hit a million dollars in trading capital, you’ll experience the same issue with Forex EAs, but until then, there’s a very real edge that you have over the banks. So forget about learning how to trade Forex from scratch on your own, because with a profitable Forex Expert Advisor, you have the potential to outperform the banks without doing any of the hard work on your own.
Sure Signs Of A Metatrader Expert Advisor Scam
Have you ever gone to a Metatrader expert advisor website that just reeked of being a scam? Typically, these sites are filled with all kinds of bells and whistles that will prey on your emotional weaknesses. One of the classic signs of a Metatrader EA scam are case studies of “beta testers” that made 300% in 3 weeks, 500% in 2 months and so on. It’s a smart way for the seller to trumpet the possibility of large gains, while not actually promising you anything concrete. Of course, there’s no Metatrader expert advisor in the world that can promise you an expected return, because that would be illegal. So if you see huge returns being “promised” in a matter of days, run.
Another classic sign of a Metatrader expert advisor scam is that the EA seller will try to convince you that their system has some kind of powerful predictive tool like neural networks or RCTPA that will guarantee you a high winning percentage. The truth is, there’s no such thing as a Metatrader EA that can predict market movements, because markets are inherently unpredictable. They are affected by millions of factors including natural disasters, unforeseen events and national interests. There’s no way a neural network can account for an Earthquake in Japan (and at the time of writing there has just been two in the space of a month) or Flooding in Australia in the height of summer. So again, if anyone talks about “predicting” the markets, forget about it.
How To Find A Truly Profitable Expert Advisors
Contrary to what the scam artists would have you believe, Profitable expert advisors do go through many losing trades, and they won’t make you 200% returns in a matter of weeks. In fact, if you can find a profitable EA that gives you a 5-10% return a month, that’s enough to set you up for life. If you consistently add to your account each month, and let your profits compound, then soon your trading capital will be producing a level of Forex trading income that will be enough to give you financial freedom.
So how do you find truly profitable expert advisors? It does take some work, but it’s a lot better than wasting your time on scam Metatrader expert advisors, I can tell you that. First of all, you already know what the junk EAs look like, so you’ll be left with a few good looking candidates of profitable EAs. I would recommend that you start with the most understated one: the one with the lesser hype and the smaller promises. Make sure that it has at least a 45 day money back guarantee, and run it on a demo account until you collect at least 30 trades with your potentially profitable expert advisor. That way you’re not risking any real money until you’re sure that you’ve got the real deal.
Profitable expert advisors are hard to come by, but now you’re equipped with the inside knowledge of how to weed out the junk so you’ll find one much faster than you would have otherwise. The most important thing in your search is to recognize that you need to verify the results for yourself before you trade it with real money. Once you have done that, then you can rest assured that you really do have a profitable EA on your hands.