You’ve just bought, for a reasonable amount of cash, an expert advisor to run your MetaTrader – it’s going to give you cast-iron signals about when to open and close trades, it’ll run automated, it may make you $10,000 in 100 days of forex trading, or so they say…

But, as it so happens, unless you’ve been the first one to buy a very unpopular piece of software – a few other copies of this EA have been sold.

Let’s just run through this scenario:
20,000 trades get placed simultaneously – or 20,000 attempts are made to get the same trade placed. Online brokers do tend to notice these things, and so what happens, even if you do get filled, the spread rockets up, and there is nearly always comeback on it.

Mass produced EA’s tend to have a life-cycle – they work for a while, they produce a ROI, even 30% or thereabouts, and then they gradually start not working. They get updated, not quite so good, and the pips trail away, until you’re left with very little return on your investment.

Maybe if you’re keen to use an expert advisor, you could learn to write one yourself – it’s not the most complicated thing ever, (if you have done a bit of programming before). Then – and this is about the only way – you’ll know that you’re the only one placing the trades in that exact pattern.

Be a trader – don’t be one little sheep in a large flock….

One Response to “Using Expert Advisors – also known as being a Forex Sheep”

1. chibi says:

   March 15, 2009 at 12:23 pm

   good

   Reply