My Infima Forex

Why Do Most Expert Advisors Fail?

Forex robots or Expert Advisors are automated trading systems that are supposed completely eliminate the manual work. However most of the time they fail to do that while making profit. In other words, the robots start losing. But why does that happen? Let’s talk about that.

First of all it comes down to how the EAs are created. Basically they just combine some indicators, some money and risk management rules and execute trades.But if you’ve been trading manually, you’d know that no strategy is perfect and every strategy requires you to make decisions on the spot from time to time. That uncertainty is difficult to implement in a robot.

Effectively it means that a robot has to be constantly revised and updated. The time you’d spend trading manually is supposed to be spent on tweaking your EA. But what if you’re not the creator of the EA you’re using and you can’t do that?

Most of the time that’s the case. Most beginners find robots very appealing because they offer a hands-off approach to Forex trading. However, that’s not entirely true. EAs don’t eliminate manual work, it just shifts it to other areas (EA development).

For that reason most EAs fail – because they can’t be updated as often as they should. Other times the strategy that they’re based fails altogether (which does happen) rendering an EA useless.

So if you want to trade with an EA, you either need to find a dedicated EA developer, or learn how to create one yourself. If you just keep buying Forex robot after Forex robot, you will only be able to make profit in very short intervals.