Why can't your Expert Advisor make a profit?

Recently, I have some feelings from some stories of myself and friends. To successfully use an EA to profit is not only a problem of an EA, but also a large part of the factor "people". Because the final execution of the EA is a person, if this "person" does not understand the EA and does not have the ability to execute, then his EA trading is also unsuccessful.

So here I summarize some of the problems that many people have with using Expert Advisors, hoping to be of some help to newbies (old birds ignore):

- Crazy download EA

Although this is the only way for every EA beginner, I still recommend that beginners go to the official website of MT4 to learn more, where there are all the resources you want, including the source code of some commercial EAs. The lack of training in this area in China cannot be said to be a pity. But as far as I know, there are still many well-known forums in China to learn. Browse the forums more and learn more basic knowledge, which is more effective than crazy downloads. This way you can tell which EAs are selling historical curves, which EAs are gambling and adding positions, and which EAs are fighting losses without stopping... Don't just see a smooth capital curve and call it good. The result is: I tested a lot of EAs, and finally I was drowned in garbage and lost confidence in EAs.

- EA is free

I think free software is taken for granted by people. So I always collect a lot of cracked versions of EA and try to get the source code. But I have to remind you that financial software is no better than ordinary software. If you get a Trojan horse or something in EA, the loss is not only your computer, your investment may be seriously lost, and your account may even be stolen. I have seen several real cases. So I still advise everyone not to lose the big because of the small. Compared with the precious investment capital, a genuine EA costs little money, which brings security and more comprehensive technical support and upgrades. Of course, how to choose a good genuine EA is another topic. In fact, the easiest way is to ask the official to provide an observation account, and then compare it with their customers' real accounts. You can observe it every day and observe it for a while.

- No loss tolerance

EA found it, and the simulation has been used for a while, and found that it is really good, so he hung up the real warehouse. Who knew that his luck was bad, he just hung up - lost - stopped trading - EA made a profit - hung up again - alas, lost again... In this cycle, he still lost money in the end. Of course, this example is a bit extreme, but many people are like this. The simulation can be played any way, and once the real game is played, he is afraid of losing money. I finally found an EA that can make a stable profit, but I can't bear the short-term pullback, and I can't stick to it. The profitable EA will also be made a loss by them, isn't it a cup?

- Fully automatic EA manual positioning squaring

This is also a bad habit. What does it mean? It means you have no execution, it means you don't know the EA you are using, it means you don't trust your EA, and it means you shouldn't use EA.

Fully automatic EA, under normal circumstances, does not require human intervention, unless the order is not normal, unless you can prove that you really do better than EA (this requires statistical data).

For example: I once introduced a very good trend EA: FOREX COMBO. The strategy 2 of this EA collection is a trend channel breakout strategy. Regarding the breakout strategy, it is characterized by a very low winning rate and high odds. The strategy stops loss by 30 points and takes profit by 300 points. The original intention of the designer is to offset many small losses through a very small number of large profits to eventually make a profit. This is also the essence of the trend following strategy. From the actual test, this is also the effect. But in reality, I see many friends using this strategy: either close the strategy after losing many times, or manually go to position squaring when strategy 2 holds a position. The result of manual position squaring is that most of the time you may be able to make a small profit, but you will lose the rare big profit or even the only 300-point take profit a year, resulting in the ultimate failure of the strategy.