Metatrader4 expert advisor quetions

Hi ,

I am new to metatrader and saw an advisor with total winning trade percentage of only 14% but backtesting it makes money.Is that common?

I saw most of the expert advisors been sold (on ebay0 have a much higher winning ratio 75-50 %.I dot know if this ratio is realistic or no

Is this number (wininng ratio)important when buying an expert advisor? or what is the most important parameters one should look for?

P.S:L the one I was talking about has 1.65 profit factor , 14% winning, expected pay off 303.66 .this was backtesting results from 2004 till end 2007.



Thanks

http://forexfactory.com/images/misc/progress.gif

I'm guessing here because I am very new to Forex but by answering I hope to verify my knowledge b/c I know folks will correct me if I'm wrong, or will clarify and by such I will hopefully learn something. I only say this so you understand I'm a noobie and will take this with the appropriate grain of salt.

I am guessing that this was accomplished by smart money management and risk control. The idea being to limit your downside exposure with stop losses and to maximize your upside by taking profits at the right/best time.

If you have alot of losing trades it should be OK as long as your losses are limited by stop loss trade points, you will keep the losses small. One or few good winning trades should then cover your losses and generate your profits.

Something like:
-10 pips
-5 pips
-15 pips
-5 pips
+45 pips
--------
Total: +10 pips. 1/5 winning to losing trade ratio 20%

Thanks.
I understand .It is all about managment.

My main question was "is a winning ratio of 13% roughly" a common figure/number for expert advisors? or are they usually in the 50%+ range?

Here is a post I made in another area re EA's
http://forexfactory.com/showthread.php?t=67750

Any other replies? Thanks

mrgreen makes sense here. Listen to his advise!

I would also like to add that The MetaQuotes website MQL4.com has many articles about the dificulties associated with automated trading. If the people who developed this software are warning against casual use of it then why would inexperienced traders want to pay money to have something they don't fully understand trade for them?

Please understand that I think MetaTrader is very usefull and I use EAs quite often, but mostly for testing new systems. I will occasionally use an EA to place trades or manage the trades once opened, but if there is an EA out there that is fully capable (I'm not saying there isn't one) of making a profit day after day, then it's worth far more than a few hundred dollars and it will likely be custom designed by a proffesional to fit your trading preferences.

Do yourself a favor. Concentrate your resources on learning what you can about trading and if you are experienced with programming learn to write simple EAs, then over time combine the simple EAs into an EA that you fully understand.

If you should happen to purchase an EA on Ebay that makes money long term throughout various market conditions, concider yourself very very lucky.

thanks M_MM

That is exactly what I am doing.

All I was trying to get to is some fundamental questions about EAs in general so I can evaluate what I have or in the future what I will have.

I know very well that it is a very complex process and takes alot of patience and experience.

Glad to hear that moon,

Sorry if my comments sounded a bit harsh.

I wonder if anyone who bought an EA from Ebay will chime in and tell us what they purchased.