6 Common Mistakes to Avoid While Choosing Forex Expert Advisors

The forex trading landscape has undoubtedly changed with the emergence of forex robots or expert advisors. These simple applications can automatically provide traders with forex signals and trade on their behalf. While forex robots were a novelty at one point, things have changed. The market is filled with various developers and brands all marketing their products as the best forex robots. 

The reality is different, as most of these forex robots from unnamed or new developers turn out to be elaborate scams. Simply reading through forex ea reviews isn’t enough as they too can be manufactured to deceive people. Thus, for every trader, it is imperative that they avoid some common mistakes when selecting a forex robot. 

Six Red flags that You Should Recognise and Act Upon When purchasing Forex Robots

1. Avoiding forex robots with questionable payment gateways

Traders should always check the nature of the payment gateway of the particular forex robot. If it seems too technical to understand, chances are that the payment gateway is simply the system that allows companies to charge money from your credit card, PayPal or any other source. Look around for clues that can confirm the legitimacy of the payment method being offered. 

2. Not trusting backtesting results blindly

Traders should never consider backtest results as a form of prediction of future results. Backtests only reveal whether the particular trading strategy was profitable in the past and the conditions are hypothetical. Secondly, most backtests are performed based on the 90% modelling quality. The rest is variable and any bad trades in the remaining ten per cent can spell danger for a trading account. Lastly, a backtest with 99% modelling quality cannot guarantee the future. There will always be factors such as news released, different price feeds, internet connection failures, computer or VPS failures, software failures, broker server delays or failures, price spikes, and others. Rather, the best way to test a forex robot is to use real money or a demo account on the real market. 

3. Never go for unverified trading results and records

When traders or MQL programmers create Expert Advisors they usually test them on a free historical data from Dukascopy. Traders should stay away from forex robots that cannot produce trading records from verified Myfxbook pages or similar sites. Many experienced traders think that forex robots aren’t even worth examining if it does not have Myfxbook results. Additionally, many forex robots attach screenshots to myfxbook results without giving real access to this portfolio on the original Myfxbook site. These are red flags as most of the time they are elaborate frauds designed to fool unsuspecting traders. 

4. Staying away from arbitrage trading scams

There have l cases of traders being scammed by arbitrage. This is because usually these types of accounts are reported as real accounts when they are demo accounts. This is a ploy to attract unsuspecting traders. Arbitrage systems do not work on real accounts due to slippage and requotes. 

5. Profits only expressed in pips

It may so happen that a trader makes hundreds of pips in profit, but end up losing his money. This can be done by using the partial close technique inside MetaTrader 4. While it’s a common technique used by manual traders to close a part of a trade and leave the other part open, this technique can also be used to trick traders. 

6. Avoid exit popups

Exit popups refer to a popup window that is presented as one wants to leave a particular website. It insists that the trader stays on the site and receives a discount or a better offer. While the presence of exit pop-ups doesn’t always mean that a particular forex robot, is still a red flag. While some legit companies use this, more often than not it is associated with scam forex robots. 

Conclusion

Because of the popularity of forex robots, the number of scams involving such applications has also grown exponentially. This makes it imperative for traders to avoid the common mistakes that have led others to ruins. Following the above advice and avoiding these common mistakes will help traders find the best forex robots for any budget.