Are EA Robots are worth a shot?

In the last period, I came up with the idea to try to raise an account (or use a bigger account) and gain some ‘passive’ income with the help of an EA trader.  

For the ones that don’t know what is an EA, the abbreviation comes from Expert Advisor, and, at the base, it’s a program that helps you trade.  Every trader, trades based on a strategy, where applied to a chart, provide the settings for the future trade. Now take this strategy, code it, and you have a basic program that will display on your chart the needed information. Now, if you have the signals to enter, why not also take the trade-in an automatic manner. Now you have an EA or Forex Robot that will take the trades in your place.

Photo by Jason Leung on Unsplash

In principle, I know and understand how a robot work, I read part of the documentation provided by the MT4 platform and even studied the code of some indicators and robots.

My first idea was to create a robot, working with my trading strategy and give him some money and wait (with outstretched hands for that monthly gains, like all the Bundy Familly). In theory, everything is easy, but then I’ve started backtesting my strategy and I saw how many faults I have and how unproductive I am (….and you will also see soon), I decided to take a step back and wait some time.

But as I love coding I came with the idea to test the simplest commands, like drawing patterns on the chart or identifying trends. Of course, there are so many rules to apply, from considering a range to taking note of the current price, how many candles you want to test, etc.etc. that for the moment it will take to much energy to do that.

Now, when I am mentioning this, I want to apologize for my absence in the last period, as I been focusing on backtesting and the EA robot and I totally neglected the blog.

Scraping that plan, the next logical step, was to investigate the current market for proven robots. Oh  WOW!!. There are so many out there. It is sufficient to write the top ten EA robots for year <<instert current year>> and I bet you will find at least 3-4 pages with 10+ different robots.

Where to start from? Well, I started by seeing what trading strategies are “hot” at the moment, and from what I identified there are scalping and grid trading (and both can work with Martingale technique). I’ve started the search from a YouTuber I like to follow, TraderNick and his current robot. I totally neglected, for now, the robot of Rob Booker (one of my first passions) but would definitely check it out in the future.

The next phase made me feel like Santa, “making a list, checking it twice, gonna find out who’s naughty or nice”. I took the mentioned TOP 10 best… pages and compared them, started a full review with pros and cons for each robot. I won’t mention It took me 1 week to identify 5 robots I want to investigate further and I even bought one (here it’s an interesting story but I will mention it another time, just keeping you on your toes a bit <<sorry>>).

But does it worth it?

It really depends on who you ask. You have to understand, that we are different from head to toe, and have different interests and mentalities. So it is normal you will find 100 million bad reviews and 100 million good reviews.  What I am trying to do at the moment is not a ‘do like me’ post, I am just sharing my toughs about this. (Disclaimer: Also, the “guys” I mention in this post, and in my blog, they are the persons I like to watch and there are multiple of intresting persons there). These are the advantages and disadvantages of trading with a robot from my point of view.

Advantages:

  • If you have a good strategy,  the robot will mechanically take your trades all the time, you will not miss a single one (if you have enough money in the account)
  • If you don’t have time in a week or a day, or during the night, your little “slave” will have
  • It can grow your account very fast. I saw it a lot in the backtesting and in the multiple reviews I searched for
  • It has no emotions, it has discipline and he will not fell asleep

Disadvantages:

  • The robot will get you in trouble. It is not a certainty, it is what I saw from my last two experiences (as my account is in trouble because of a robot, and the current backtesting of the robot I decided to test and use)
  • Even if it’s an automatic trader, you have to keep him out of troubles and it will take you some time (from time to time)
  • Sometimes they need a bigger account to avoid blowing your funds due to fundamental events or wrong configurations
  • It lacks the instinct, or the luck, that sometimes keep your trades out of blood shed
  • Some of them don’t know the economic calendar and will try to trade during “hot” hours
Photo by Adam Lukomski on Unsplash

After analyzing five robots, I’ve decided to invest in one and test it. Well, the last week was just for backtesting, optimizations, new configurations, and studying as many cases as possible to see in what scenario the robot will make problems.

The good part of the backtest is that you will gain a cumulative result of the gains, losses, number of wins, number of losses, and so on, and you do it (with different configurations) until you are happy with the results. Another part I loved was the “optimization” of parameters for better results. You can use the MT4 platform magical powers to test multiple combinations of parameters and check for the best results. And this idea was inspired to me by watching another Youtuber OPTIMIZFX.

With the proper configurations found I’ve finally left the robot to trade (in a VPS machine) on a demo account for some time. And I will check on him in a week (isn’t it sweet) to see his results. I’ve also funded another trading account with 300 USD, to make the switch if I am happy with the ‘probation’ period. But I considered the 300USD as an expense and out of my portfolio because I take into consideration that the robot will lose.

If I made you curious about this, I will get back to you with results of the robots work.

Thank you for reading this!

Disclaimer: I am not a financial consultant, all the information you find here are my decisions, I taken at that moment, on my own analysis. I am open to any type of discussion about money. If you want to replicate my portfolio take into consideration that it is your money.

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