BEWARE of these EA's (blacklist)

[TradingKnowledge]

In a world of many, many EAs (thousands) and automated trading solutions, unfortunately most of them are JUNK ... and sometimes it can be hard to tell the difference between a good one and one that will blow your entire account!

BEWARE OF THESE TYPES OF EA'S

• Endless Martingale / Multiplier Strategies
  Every trade, even when blind, has a 50/50 chance of winning, or at least close to it. So, don't be fooled by EA's that use martingale/multiplier strategies to average positions until they win. They will win, often times for a long time, but in the end they will blow your account when you get a strong trend (which is only a matter of time).
  
  
• Endless Grid Strategies
  Similar to above ... the law of averaging down can work in your favor, and some of our favorite EA's use this sort of method for order entry. However, when it continues forever, one heavy trend can blow your account. Make sure there are protective measures in place.
  
  
• Heavy Lot Sizes
  If your EA algo is using heavy lot sizes, wins will be fun ... but losses can hurt bad. Be responsible with lot sizing.
  
  
• Use Common Sense!
  In the end, it's all risk/reward. If you're aiming for 100% per week return, you're not being realistic unless you know it's also possible to blow your account in a week (or even much less). Targeting more realistic ROI's (5-15% per month) will always be much less stress and much more possible to do in the long run. Remember this!

 

[Miranda]

Martingale stuff = end of your wallet