Posted by: Hukkoss
« on: December 12, 2018, 05:21:49 PM »Choosing the right Robot is crucial in profitting.
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Posted by: Hoafa
« on: October 18, 2018, 02:39:20 AM »Manchester, United Kingdom, March 08, 2017 --(PR.com)-- FXDailyReport.com is always dedicated to helping forex traders, especially the newbies in this form of trading. Recently, the website released a new post giving a number of helpful tips for traders who are planning to make use of forex ea robots, which are one of the most effective and popular tools used by many forex traders today.
The website wants to help their readers in finding the best forex robot to try and purchase in the online market today. With that, the company released a number of tips in order to facilitate the process of choosing the best forex robot to use. In this way, forex traders will have more chances of winning and hitting the correct pricing and movement for the commodities and currencies included in this form of trading.
Forex robots have been introduced as powerful tools that can be used to increase the chances of a trader in earning money through successful trades. On the other hand, the market is filled with a lot of choices to choose from that makes it much harder for traders to find out which one they should choose. Buying one is among the biggest steps that every forex trader can make. And if they choose the wrong ones, they will surely lose their hard earned money, as the robot does not help them in figuring out the best decision to take when they trade.
FXDailyReport understands this situation and so, they finally decided to come up with a guide that will teach traders about choosing the right forex robots to buy that will give them the best value for their money. Forex robots are said to be lucrative tools but not all of them are designed to make this come true. Some are not effective enough. FX Daily Report will help traders narrow down their search and find the best robots that are waiting for their attention.
EA Statistics is what we need to see when it comes to EA
#1: Profit Factor
The profit factor tells you straightaway whether the robot will make money or not. It is the most important statistic. It shows the relationship between risk and profit. However, any EA that is profitable but which risks all your money is not the right one to be chosen. Profit factor is calculated as the ratio between the sum of all the winning trades and the sum of all losing trades. In other words, it is the ratio of gross profit to gross loss. An EA with a profit factor of less than 1 should never be chosen. Choose a robot with as big a profit factor as possible.
#2: Expected Profit per Transaction
Also referred to as expectancy, this statistic indicates the amount of money that can be earned in a trade. This is based on historical data and is no guarantee for future performance of the EA. However, it is useful. Expected profit is calculated as the difference between average profit per trade and average loss per trade.
#3: Drawdown (maximum drawdown, average drawdown, and drawdown recovery)
Drawdown is a clear indicator of risk. It indicates the percentage of maximum loss recorded since the previous highest point. This indicates how much you can lose when the robot is in trouble. It is recommended to analyse drawdown with an equity curve chart. A rising curve indicates a profitable robot and an agitated curve a volatile one. A volatile robot is one with a higher drawdown and poses greater risk.
Maximum drawdown indicates maximum loss since the previous highest point. A 50% drawdown indicates that the robot lost 50% from its last highest value at some point in time. If you make use of this robot and invest USD 10,000, just prior to its drawdown, you could end up losing 50% of your capital.
The average drawdown is the average value of different EA drawdowns. If the EA had 3 drawdowns of values 12%, 10%, and 4%, then the average drawdown is (12+10+4)/3 = 8.7%. This figure gives an idea of the expected loss during a drawdown period. The maximum drawdown gives the worst case scenario.
Drawdown recovery gives an idea of the speed at which a trading system can emerge from a drawdown. Drawdown recovery can be expressed in the form of number of trades or the time required. Choosing an EA that can return to a positive value after a loss is advised. A less volatile robot returns back slowly and steadily unlike a riskier one.
#4: Risk to Reward Ratio
This factor is indicative of the risk appetite of the robot. As an example, a robot using a 5-pip take profit and a 40-pip stop loss has a risk-reward ratio of 8:1. The success rate in this case works out to 89% to make a profit. There are robots in the market with a risk-reward ratio of 15:1 (especially scalping robots). This does not, however, mean that the robot does not make money. If the success rate drops even by a small amount when risk-reward ratio is high, then the robot will lose.
In spite of all these factors, robots come with options that allow your risk to be managed by an adjustment of maximum SL and TP. The adjustment of these factors helps you to improve the risk-reward ratio of the EA. But before deploying these robots, it is essential to conduct a number of backtests prior to changing the settings. These are done to observe whether altering the settings will affect the strategy or not.
.:https://fxdailyreport.com/best-profitable-forex-robot-expert-advisor-ea/
The website wants to help their readers in finding the best forex robot to try and purchase in the online market today. With that, the company released a number of tips in order to facilitate the process of choosing the best forex robot to use. In this way, forex traders will have more chances of winning and hitting the correct pricing and movement for the commodities and currencies included in this form of trading.
Forex robots have been introduced as powerful tools that can be used to increase the chances of a trader in earning money through successful trades. On the other hand, the market is filled with a lot of choices to choose from that makes it much harder for traders to find out which one they should choose. Buying one is among the biggest steps that every forex trader can make. And if they choose the wrong ones, they will surely lose their hard earned money, as the robot does not help them in figuring out the best decision to take when they trade.
FXDailyReport understands this situation and so, they finally decided to come up with a guide that will teach traders about choosing the right forex robots to buy that will give them the best value for their money. Forex robots are said to be lucrative tools but not all of them are designed to make this come true. Some are not effective enough. FX Daily Report will help traders narrow down their search and find the best robots that are waiting for their attention.
EA Statistics is what we need to see when it comes to EA
#1: Profit Factor
The profit factor tells you straightaway whether the robot will make money or not. It is the most important statistic. It shows the relationship between risk and profit. However, any EA that is profitable but which risks all your money is not the right one to be chosen. Profit factor is calculated as the ratio between the sum of all the winning trades and the sum of all losing trades. In other words, it is the ratio of gross profit to gross loss. An EA with a profit factor of less than 1 should never be chosen. Choose a robot with as big a profit factor as possible.
#2: Expected Profit per Transaction
Also referred to as expectancy, this statistic indicates the amount of money that can be earned in a trade. This is based on historical data and is no guarantee for future performance of the EA. However, it is useful. Expected profit is calculated as the difference between average profit per trade and average loss per trade.
#3: Drawdown (maximum drawdown, average drawdown, and drawdown recovery)
Drawdown is a clear indicator of risk. It indicates the percentage of maximum loss recorded since the previous highest point. This indicates how much you can lose when the robot is in trouble. It is recommended to analyse drawdown with an equity curve chart. A rising curve indicates a profitable robot and an agitated curve a volatile one. A volatile robot is one with a higher drawdown and poses greater risk.
Maximum drawdown indicates maximum loss since the previous highest point. A 50% drawdown indicates that the robot lost 50% from its last highest value at some point in time. If you make use of this robot and invest USD 10,000, just prior to its drawdown, you could end up losing 50% of your capital.
The average drawdown is the average value of different EA drawdowns. If the EA had 3 drawdowns of values 12%, 10%, and 4%, then the average drawdown is (12+10+4)/3 = 8.7%. This figure gives an idea of the expected loss during a drawdown period. The maximum drawdown gives the worst case scenario.
Drawdown recovery gives an idea of the speed at which a trading system can emerge from a drawdown. Drawdown recovery can be expressed in the form of number of trades or the time required. Choosing an EA that can return to a positive value after a loss is advised. A less volatile robot returns back slowly and steadily unlike a riskier one.
#4: Risk to Reward Ratio
This factor is indicative of the risk appetite of the robot. As an example, a robot using a 5-pip take profit and a 40-pip stop loss has a risk-reward ratio of 8:1. The success rate in this case works out to 89% to make a profit. There are robots in the market with a risk-reward ratio of 15:1 (especially scalping robots). This does not, however, mean that the robot does not make money. If the success rate drops even by a small amount when risk-reward ratio is high, then the robot will lose.
In spite of all these factors, robots come with options that allow your risk to be managed by an adjustment of maximum SL and TP. The adjustment of these factors helps you to improve the risk-reward ratio of the EA. But before deploying these robots, it is essential to conduct a number of backtests prior to changing the settings. These are done to observe whether altering the settings will affect the strategy or not.
.:https://fxdailyreport.com/best-profitable-forex-robot-expert-advisor-ea/
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