I already wrote about expert advisors and how is it worth it to trade. Briefly remind you the main points:
- Expert advisor is good, but you should not fully rely on it. The robot is a robot. Its benefits are in an instantaneous decision, but it is not working on markets where quotes are subject to fundamental factors. Because all signals of Expert Advisor should be double-checked;
- there are no universal advisers. These programs are written by the same traders like you. So maybe it makes sense to create your own robot? Yes, it will take about a year;
- makes no sense to buy these programs, since there is a risk of losing money. However, with free software it’s not so easy — agree who will be share for free what makes money?
A good advisor opens at least 75-80% of profitable trades. However, it is a theory, because otherwise everyone would have become successful traders. In practice, each robot needs long (at least 3 to 6 months) testing and individual selection of the best conditions to open trades. First, not everyone knows these parameters to determine (and backtest will not help here), and secondly, not everyone has so much patience. This is the answer to the question why not all become millionaires.
Below I will give a review of one of the advisors to understand what is generally important in this program, what you should pay attention to, etc. as an example, take one of the advisors, 2Sides_Stoch posted in free access on the website Forex-broker-collect. By the way, not so many brokers post the following programs on their websites!
Expert Advisor 2Sides_Stoch
According to the site, this EA is tested for 6 months and during this time shows the yield 92,49%. Recommended Deposit — $ 1,000, the maximum drawdown was observed in the amount of 24,44%. How to install expert Advisor in MT4, and then pass the test of the program clearly explained in the video on the website of the broker. And Yes, recommended Deposit it in a money — market responds differently to the size of the lot. And whether to believe in a return or not, you decide!
The expert Advisor 2Sides_Stoch is based on the stochastic oscillator with elements of the martingale. The EA identifies oversold and overbought. The position opened when the indicator line goes in the data area and intersects with the signal line. The difficulty in such a strategy to determine the pivot point in these zones, because in 2Sides_Stoch martingale strategy is added. When the signal arrives EA opens one position, and if the price is still a turn — another position in the same direction with a large lot.
Specified profitability of 2Sides_Stoch provides the basic settings. But you can change them! For example, there is a function of opening the first position manually. The optimal timeframe is M5 or M30, the currency pair new Zealand or Australian dollar / US dollar.
Above there is the backtest of your EA. As for settings, there are more than a dozen. I will talk about the main ones:
- UseVTP — the switch issuing orders take profit. When setting the parameter to true to use trailing stop, positions are closed by the signal of Advisor;
- CloseBy — when set to true the robot will close trades with a series of counter orders, if false, closing a position will be consistent with the highest order;
- Manual Trade — the possibility of closing the first position manually. If the position goes in loss, the EA will close it automatically;
- ZTP — if true to achieve a certain number of orders specified in this parameter, the robot will put the take profit to breakeven;
- SellColor and BuyColor — shades of lines of the respective series.
In fact, all the additional parameters have two values — true and false manipulation which can bring the desired result. One of the problems of free trading expert advisors — the absence of a detailed control instructions. This is another argument in favor of robots is better to download on the website of the broker. If you are working with this broker, then you just have to ask support to send you recommendations for your chosen Advisor. Downloading programs from other sites, you can expect maximum support on the trading forums (by the way, is also the solution to the problem).
In conclusion again draw your attention to the fact that the trading advisors, including 2Sides_Stoch, require configuration and testing. You can tune the program for more than a year set before it will bring profit. Therefore have patience and go for it! By the way, a little tip, no one bothers to run in testing multiple programs!