How to Choose the Best Forex Robot for MT4 or MetaTrader 4 Platform
The Forex market is, without a doubt, one of the most lucrative and swiftest investment opportunities available in today’s tough financial climate. Forex trading has huge profit potential however, it comes with its own challenges. The most successful traders spend years studying the FX markets and develop algorithms using complex mathematical formulas to beat the market. With the advent of electronic trading now it’s possible for everyone to benefit from the FX trading by simply using a Forex robot or an Expert Advisor (EA). In this post, we answer one common question asked in the Forex World – How to Choose the Best Forex Robot for MT4 or MetaTrader 4 Platform? We will be upfront with you now… we believe our very own expert advisor is one the best Forex Robot for MT4 that is available in the Forex world. You can learn more about it here.
What is a Forex Robot or MT4 Expert Advisor?
A Forex robot is an automated computer program or an algorithm that automates the trading process by eliminating any human intervention. A Forex robot buys and sells based on a predefined set of rules and mathematical formula that can follow a certain trading strategy. There are various types of automated trading software that allow you to develop your own Forex robot, but the most popular platform among retail traders is the Metatrader 4. The Metatrader4 platform allows its users to build Forex robots which are also known as Expert Advisors or EAs.
If your trading strategy is purely mechanical that doesn’t demand any kind of human intervention thanL coding your strategy into a Forex robot or an EA to trade for you around the clock, probably it’s the best option. As an alternative, you can also buy from the internet an Expert Advisor but you really need to be cautioned and do your own due diligence because the majority of the EA that is for sale are not profitable.
It is important to note that the majority of the made-for-sales EAs out there are very cheap and they promise at the higher end of 90% profitability, which should always be a red flag. Despite all of the astronomical promised gains, there is no such thing as a “holy grail” and if you really had a “money maker machine” you probably wouldn’t want to sell it for only $49.99. One way to make sure an EA is genuine is if the seller has traded on a live account with the EA and has provided a third party verification such as MyFxBook. If you’re only looking for buy and sell signals you have the choice to just copy the trades of your favorite Forex Robot or EA available through MyFxBook. Every trade that the Expert Advisor will generate will automatically be copied to your account.
The Importance of 3rd Party Verification
The Forex world is abundant of scammers and frauds and third party verification really is the core process to discern between a scammer and a truly profitable trading strategy. The MyFxBook is the most trusted third party verification which will make it hard for anyone to manipulate his trading results due to a strict verification process. The MyFxBook will verify and certify that your trading results are genuine, as an outside party, MyFxBook will look at your trading records and then do an individual analysis of your performance. Click here to take a look at our own trading account with MyFxBook.
MyFxBook not only it will verify your trading performance, but it will also provide you with statistics that will help you choose the best Forex robot or EA for your needs. These are the most important parameters you need to keep in consideration before choosing the Best Forex Robot for MT4…
Before examining the performance statistics you want to make sure that the “Trading Privileges” is verified. The verification process is designed to ensure you’re actually dealing with a real person and the owner of the trading account which has the rights to place trades on the account. This is very useful because you can publish an account on MyFxBook without being the rightful owner of the account if you know the investor password. If the user has his Trading Privileges Verified you know you’re dealing with a genuine trader.
The Best Forex Robot for MT4 has to have Verified Track Record
This is an automatic verification system designed to ensure that your performance history is genuine and not manipulated. It’s also used to identify whether or your account is real or demo and more important, if you provided the correct information. MyFxBook will simply inspect if the track record provided correlates with the track record found on the Broker’s server. This will provide you with a full track record and all the trades since the inception of the account.
Once the track record has been verified a green checkmark should appear on your profile confirming that all the trades are genuine and executed in a live trading environment. Furthermore, this will ensure that all future trades will be verified as well as MyFxBook system will connect to your broker server and update your trade results.
A Real Account Must Logically Have Withdrawals
For extra security measurements, you need to make sure the account has made withdrawals. No withdrawals should raise red flags because this can be an indication you’re dealing with, most likely, a demo account or a fake account. Think about it logically for a second… no matter how profitable a Forex Robot is, would you withdraw at least your initial trading capital from the account and let profit flow? If the account has processed withdrawals it can give you more confidence that you’re dealing with a live account (see below).
The first parameter to investigate when it comes to the trading strategy is the drawdown. You want to see a smooth equity curve(see figure below) without crazy drawdown as this is indicative of someone who uses prudent risk management strategies. After each drawdown, you need to see a recovery of the account balance this will ensure that the person who trades the account has the mental strength to perform in the market despite all adversities. Drawdown is part of trading and any DD less than 30% is considered to be acceptable by the industry standards.
Understanding the Profit Factor
The Profit Factor is simply the sum of all profits divided by the sum of all losses. A sound and profitable trading system should have a positive Profit Factor greater than 1, the higher the better. By the Forex industry standards, a Profit Factor greater than 2 is considered exceptionally good while a Profit Factor below 1 is indicative of a losing system. The Profit Factor is important because it gives you the chance to analyze how bigger are your wins compared to your losses.
Expected Profit per Transaction (Expectancy)
Expectancy shows us how much we can win or lose on every transaction. The Expectancy will give you the mathematical understanding of your trading system in terms of profit forecast. In our case study, we can see that the “Profit By Friday Active” system has an expectancy to make $0.77 on each trade. A system with a proven edge needs to have a positive expectancy.
Risk Reward Ratio
The risk reward ratio determines how much money you intend to risk versus how much money you intend to win on any one trade. This is an important metric to judge a system by because the majority of traders use too much risk compared to the reward in case they are wrong. Superior risk management only uses an RR ratio of at least 1:2 which is crucial for the account longevity.
Choosing the Best Forex Robot for MT4
When choosing a Forex robot or an Expert Advisor it’s important to be aware of the parameters highlighted above and do your own due diligence. Above all capital, protection should be your number one priority. Last but not least choose to make consistent profits rather than an EA that promises unrealistic gains. Now if you are interested in this Forex MT4 Robot which we believe is one of the best in the market, then please click here. It’s called the EURUSD Super Scalper EA.
Claim Your $60 No Deposit Bonus Here
All you need is to have your live account verified!
Of course, you need to open a live account...
2 Brokers that we like A LOT!
USD30 from each Forex Broker Below.
Both Forex Brokers have excellent rating!
We use both of these brokers and proudly promote them!NOTE: Not all countries qualify for these bonuses. Terms and Condition Applies.