Hey everyone,
I’m ready to dive into testing Expert Advisors (EAs) live with a $1,000 balance per EA, and I’ve set some ground rules to keep things under control. I want to hear your feedback on my plan, any EA recommendations, or tips from those already running EAs live.
My Rules for Testing EAs:
I’m ready to dive into testing Expert Advisors (EAs) live with a $1,000 balance per EA, and I’ve set some ground rules to keep things under control. I want to hear your feedback on my plan, any EA recommendations, or tips from those already running EAs live.
My Rules for Testing EAs:
- Backtest Quality: Each EA needs a backtest with 90%+ modeling quality (tick data if possible). I want to know it’s got a decent shot before going live.
- Starting Capital: $1,000 max per EA, straight into live trading. If it does well, I’ll add more funds gradually, but only if it’s earning its keep.
- Risk Management:
- Max drawdown limited to 25% of the $1,000 account to avoid big wipeouts.
- Every trade needs a stop-loss, no gambling here.
- Risk per trade capped at 2% ($20 per trade).
- Performance Metrics:
- Backtests should show a profit factor of at least 1.3 (profits vs. losses).
- Aiming for 3%+ monthly ROI in backtests over at least 1 year.
- Live Testing Period:
- I’ll give each EA 3 months live to prove itself before deciding to add more funds.
- Market Conditions:
- Backtests should cover a mix of market conditions to avoid curve-fitting.
- Transparency:
- I want weekly trade logs to keep tabs on performance.
- Basic documentation on the EA’s strategy is a must.
- Broker Compatibility:
- Needs to run smoothly with a low-spread, regulated broker.
- I’ll check for any slippage issues early on.
- Exit Plan:
- If an EA’s losing consistently for 2 months compared to its backtest, I’ll pause it and reassess.
- No profit after 4 months live? I’m probably done with it no matter of the 25% drawdown.
- Strategy Fit:
- I prefer EAs with clear strategies (e.g., scalping, trend-following).
Hi there!!!
Northsar trader, high risk All Time Profit:
$753,971