Ever since MetaTrader 4 entered the market, automated trading became a popular way to trade forex. MetaTrader 4 supports the use of forex expert advisors which are commercially made software tools to help people trade forex easily. The market is filled with options when you search for dependable Forex EAs. one must carefully make a decision and choose the one which suits their requirements, trading style, and risk tolerance to get better results.
A lot of first-timers do not have sufficient knowledge about what should they look for when choosing a forex EA and that is why they often take a risk that does not go their way. Understanding which of the fx EAs fit perfectly into one’s trading strategy could get easier if people keep an eye on the statistics of that particular fx EA. Statistics are genuine data that proves beyond suspicion whether an EA is capable enough to handle trades or not. The different kinds of statistics that one needs to find and analyse before choosing an EA are;
Expectancy of profit
This is an important statistic to figure out and analyse in order to check the efficiency of any forex expert advisor available for use. The expectancy of profit for each transaction is simply referred to as expectancy. This statistic tells traders how much they can expect to earn per trade on an average.
This statistic is based on one’s trading history which is why it is not the same for everyone. For the same reason, it cannot predict what the future holds for any opened buy/sell position in the market. Still, the expectancy of profit remains an important statistic to consider while choosing high-performance forex expert advisors.
If you have been associated with the forex market for a long time then you must have heard of drawdown before. This statistic is an important one to consider for any forex trading looking for profitable forex expert advisors to improve their trading experience without losing a lot of capital. There are three types of drawdown indicators namely; Maximum, average, and recovery drawdown.
Drawdown is known to be an accurate indicator of risk while trading forex as it shows the percentage of maximum loss ever recorded after reaching the most recent high point. If you take drawdown carefully into account, it can signal a potential drop to let traders know that their forex EA is in trouble.
The profit factor is probably the most important prerequisite for anyone looking for forex expert advisors that actually work and bring results as well as profit. While analysing various statistics related to forex expert advisors, if you find yourself asking whether a particular EA would help you make money or not then the profit factor is used to find the answer.
It basically builds a connection between profit and risk associated with any ongoing trade with the help of a forex expert advisor. When you figure out the profit factor of any forex expert advisor that shows itself as profitable but also risks all of your hard-earned money into its account, then that could not be considered an ideal choice for traders.
Every forex trader is acquainted with the risk-reward ratio which acts as a foundation for their trading style. Forex EAs take the risk-reward ratio pretty seriously as it increases/decreases their appetite for risk. In order to figure out a success rate, forex expert advisors require a risk-reward ratio to perform as per the requirements of any trader.
There are different kinds of risk-reward ratios associated with any forex EA and each of these values have a different meaning. For example, having an 8:1 risk-reward ratio means that the EA is using 5-pip take profit and 40-pip stop loss.
Where to find the EA statistics?
Forex expert advisor statistics are not difficult to find when you research every single aspect of it. One must keep in mind that EA statistics especially the ones we have discussed above are critical to avoid forex scams that contaminate the market on a global scale. On independent sites, you can find forex EA statistics and the option to filter to get the best results.