If the vendor unable to provide data to calculate average drawdown then you should not consider this vendor and all the MT4 EA related to it. The inability to provide historical data is one of the many warning signs that you should be aware of.
Another warning signs is the guarantee of huge profits. Some claim that they have created the perfect system that can generate huge profit over time. Most of the time this turns out to be scam or the ponzi scheme. A Ponzi scheme usually fools the trader by giving out huge profit initially and promises more profit to come. Actually, they are using other traders or investor money to pay up the top traders to show good profit and in turn bring in more investor. When you increase your capital or invest more money, the schemes suddenly disappear along with your money.
So before choosing an best MT4 EA, take not on the vendor reputation. Do not get too excited on the promise of profits. In trading, there are bound to be losses. The best MT4 EA will help you to reduce those losses and not completely overcomes it. Then look on a few things concerning the MT4 EA vendors.
- Does it have an audited result?
- How about actual customer referrals or other traders reviews?
- Are you able to contact the vendor personally to get more information?
- Does it has actual historical data and had been running live for quite some time?
In the end, if you feel that the vendor is suspicious, just stay away from it. There is many other decent and reliable best MT4 EA vendors that you could choose from.
In conclusion, what do you need to learn in choosing the right MT4 EA?
- Learn how to read trading statistic.
- Learn how to discern profitability factor. This includes reading and understanding drawdown, performance expectancy in which case you need to study MT4 EA accuracy and Win/Lose ratio.
- Learn the intangible factor of your MT4 EA. This includes understanding your trading style and managing your trading risk and invested money. At the same time, you learn how to run your MT4 EA effectively by using both quantitative and qualitative analysis such as leverage, trend size and trading capital.
- Learn to know the warning signs of a poor MT4 EA and not to use any MT4 EA from the same vendor.
These four main factors are important and you need to have good grasp of each. Do not overlook any of the discussed factors. Our intention is for you to research and analyze the best forex EA. In the end, you should have the most suitable forex best EA to maximize your trading efficiency. If you do have any additional question or would like to add more on the information, you are free to contact me. I hope that these few articles will give you better understanding on automated MT4 EA.
For my opinion Best forex robot 2010-2011