Do brokers prohibit EA use? | Forex Factory

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Do brokers prohibit EA use?

  • #1
  • First Post: Dec 23, 2006 3:55pm Dec 23, 2006 3:55pm
Somewhere on this forum I read that brokers will not allow an EA to be used if it is consistently profitable. Forgive my newbie ignorance, but is this true? If so, why would a broker care if the profits are obtained by an EA or the old-fashioned way?

Thanks,
Lou G
Old Benjamin was right
  • #2
  • Dec 23, 2006 4:38pm Dec 23, 2006 4:38pm
I thought it depended on what the EA does... if it is a scalping EA then many brokers have problems with this apparently... but if the EA isn't scalping or trading news, or opening many small positions all the time, I thought it should be ok with most brokers...

this is just my impresion from reading posts, it is not from experience.
  • #3
  • Dec 23, 2006 6:10pm Dec 23, 2006 6:10pm
If they allow to use a platfom with EA enabled, then they allow it.

Thats probably why they limit the amount of lots per trade or play with there setup (spread, minimum TP and SL).
Sorry for my bad english translation
  • #4
  • Dec 23, 2006 8:31pm Dec 23, 2006 8:31pm
Quoting Lou G
Somewhere on this forum I read that brokers will not allow an EA to be used if it is consistently profitable. Forgive my newbie ignorance, but is this true? If so, why would a broker care if the profits are obtained by an EA or the old-fashioned way?

Thanks,
Lou G
Also, I don't understand why a broker would treat a profitable EA any different than a profitable trader, unless the EA is behaving in some of the ways mentioned in my previous post.
  • #5
  • Dec 24, 2006 12:22pm Dec 24, 2006 12:22pm
Thank you for your responses - my reaction to reading about this in the first place was that it probably BS but, as a Forex beginner, I thought I'd sample some opinions. The EA I'm developing does not scalp at all so I can't imagine any broker objecting to its use. My intent is only to have a dependable trade manager to work while I sleep. I live in the American Midwest and am not able to trade the first half of the London session when many profitable things begin to happen.
Old Benjamin was right
  • #6
  • Dec 24, 2006 12:29pm Dec 24, 2006 12:29pm
be warned: I am talking more from reason than from experience... I don't have much experience with running EAs at brokers. Those are just my thoughts on the matter.

So hopefully someone with more profitable EA experience can write from their experience...
  • #7
  • Dec 24, 2006 2:41pm Dec 24, 2006 2:41pm
As a programmer i know by experience that Broker must apply strict rules...

Why? imagine clients using poorly writen EA.
Lets says theres a routine that call in minute, 1000 times the order specification. Multiply that by 1000 client. So its a lot for nothing... Imagine for couple of minutes and/or many more client.(Just a exemple)
They have to keep the server in good shape for the others.
Doing EA is easy. Make it profitable in long term is not.
I suggest you do a EA that response to your order instead of initiate order.
This way you have control over your Entry. You do the entry, he do the Exit.

Also theres others currency like the Yen that start at 19h (NewYorkTime).
Sorry for my bad english translation
  • #8
  • Dec 24, 2006 3:45pm Dec 24, 2006 3:45pm
or just have MetaTrader running the EA in manual confirmation mode.

Quoting Zeuzere
As a programmer i know by experience that Broker must apply strict rules...

Why? imagine clients using poorly writen EA.
Lets says theres a routine that call in minute, 1000 times the order specification. Multiply that by 1000 client. So its a lot for nothing... Imagine for couple of minutes and/or many more client.(Just a exemple)
They have to keep the server in good shape for the others.
Doing EA is easy. Make it profitable in long term is not.
I suggest you do a EA that response to your order instead of initiate order.
This way you have control over your Entry. You do the entry, he do the Exit.

Also theres others currency like the Yen that start at 19h (NewYorkTime).
  • #9
  • Dec 24, 2006 5:27pm Dec 24, 2006 5:27pm
True, but its hard to do when you sleep...

Its better if he learn good base and make is decision by him self...
Building a EA that close position is easy. Making EA that make good entry decision is Hard...
I think also its better to go with 4H or/and Daily chart. Its all the same, but you get cut less often with news...

If the system is 100% technical, go for EA Entry and Close
Pure Fundamental, go 100% Self Entry and Close
Balance, between this 2, if you use news with technical analisys .. :-)

You may also avoid trading or tell your EA (Disactivate) to do so when the fallowing day as big news, or too much news.

Quoting ycomp
or just have MetaTrader running the EA in manual confirmation mode.
Sorry for my bad english translation
  • #10
  • Last Post: Dec 25, 2006 12:19am Dec 25, 2006 12:19am
Quoting ycomp
Also, I don't understand why a broker would treat a profitable EA any different than a profitable trader, unless the EA is behaving in some of the ways mentioned in my previous post.
LOL first you need to find a profitable trader on a retail platform then this will truly answer the question.
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