EA Strategies

I have been trading an EA live for about 40 days now, and am trying to figure out the best way to diversify risk while making money. The EA uses an automated hedging strategy and functions alone 80% of the time. The other 20% I either intervene or make my own manual trades.

What I want to know is, if there are others out there trading on EA's with most of their capital, how do they set it up? For example: I have 150k in 5 accounts with a balance of 30k at the start of the month. I withdraw profits (or add to losses) and have it in different accounts with different currency pairs to diversify. I have tried to find the "magic" number when it comes to the amount in the account for margin, which currency pairs to trade, how many to trade, and at what lot size.

I welcome all suggestions even if it states that I am an idiot and have a terrible set-up .

Seems that there are too many variables to answer your question, which is coming across a bit hazy to me, at best. How many different EAs are you using? Which EAs are you using? While I am not currently trading real money on EAs at the moment (I have wasted enough capital on EAs for now) I will say that following tried and true money management rules should be applied to any EA. A lot of people think that EAs over ride basic MM rules (I use to be one of them) because of how fast EAs can make money, and or because so many of them require large draw downs to make money. This just isn't so. If your EA is risking more than 3% of your capital at any one given time, then it's risking too much, IMO (although I really believe 1% risk to be preferable). Don't know if this answers your question, but this is my current view of EAs.

Excellent points, Yoda.

One of the biggest problems I see in forums is that newbies tend to think that EA's are the ultimate way to trade. They find an EA and want to know how good it is, not realizing that EA's are designed for specific strategies and are not a "one size fits all" program.

What they should be asking themselves is what the EA was designed to do, on what time frame, with what currencies, and using what Entry, Exit, SL, TP, and MM rules.

Only then can anyone determine if a particular EA is right for them and their trading style/strategy.