Why Forex Expert Advisors Don't Work Long Term

Maybe you're like me and have spent countless hours & money testing various mt4 expert advisors - only to find that they don't work long term. They all seem to work for a period: weeks or even months - but then the EA becomes very unprofitable.

The main problem with expert advisors is that most of them will work for only certain market conditions and as markets evolve over time (sometimes very quickly) the EA doesn't adapt to be able to remain profitable. The forex trading market is a living breathing organism with a mind of it's own. Yes, trading is based on patterns and trying to predict what will happen next based on the currency's trading behavior - but what do you do when the trade patterns are constantly changing?

The concept is great - plug in a $99 piece of software and allow it to make all of your trades. Then sit back and watch your account grow into a million dollars in the next 12 months.The goal is to generate profits in the forex market without becoming attached to a trading screen all day. However, I believe the old adage "if something seems too good to be true - then it probably is" definitely applies to using MT4 expert advisors.

Some trading systems use a high stop loss of 300 pips and they are able to "show" great gains for awhile. But sooner or later these automated 4x trading methods all experience high losses. Our goal with Forex Success Recipe is to have a higher avg win than our avg loss.

All of our real-time trade alerts are generated by a live trader using a live account not simply by a piece of software. Now we have some of our trading strategies that are semi-automated but it is our experienced trader that decides when to use any particular strategy.

We actually use a set of free expert advisors, but these EAs don't place any trades - they simply help us manage the trades after they are placed.

In conclusion, to further illustrate my point - please visit the New York Craigslist site & look at accounting/finance jobs and see if there are any trader jobs listed. You will find (most of the time) companies that are still hiring live traders. If the companies with the latest trading technology and the most sophisticated algorithms are not simply trading with bots then that should tell us something.

Manage Daily Risk With Free Forex Trading Expert Advisors for MT4

For quite some time we have been using a set of FREE MT4 expert advisors to help manage some aspects of our trading. We do NOT completely depend on an any EA to issue new trades but for things like setting TP & SL, moving stop loss to break even, and managing daily risk - these are great free tools.

We found these from a company called MQLHome.com. We thought we would pass this information on to our Forex Success Recipe subscribers & blog readers. There are actually 5 free EA's and they all can be found at this web site.

One of free 4x EA's that we use is called the MOMT 5 EA. We use it to manage our max daily risk. To use this MT4 EA - install it on your trading chart per the instructions. You will be able to set the max daily gain and the max daily loss. We do not use the maximum daily feature - so we simply set that value very high.

To calculate your maximum daily loss for your 4x acct - simply multiply your account balance  times your preferred daily risk amount. For example, if your forex trading account has a balance of $2,000 and your only want to risk 5% per trading day - then you would input $100 in the "Loss_Limit" input field.

Now once your cumulative loss for the day reaches $100 - the EA will automatically close any other order that is opened for the rest of the day. This is a very powerful tool to prevent a large daily drawdown from taking place in your account.