Durability of an EA

Hey guys,

just want to clarify a few things on what you term as a profitable EA.

Apart from the normal Profit Factor> 1.2, DD < 100pips etc.. would you use an EA that is making loss of 50 pips per month for 2008 and making 100 pips per month for 2009?

I have created many EAs which tend to work perfectly well for this year and then lost some money over the next.. problem is even if it is working perfectly well till today, i wont know if its good enough for tomorrow..

The 1st & 2nd pic show the result from 2008 1st Jun to Dec while the 3rd and 4th is from 1st Jan to Jun.

Both are from the same EA with same setting on 5 digit broker. Quite far apart in terms of result i would say. can someone tell me the difference between this 2 period so i would know what to take note of in future?

If I knew it would make 100 pips per month in 2009, I'd use it.

As for knowing if an EA will do well, you need to figure out what type of market the EA will do well in, and then whether or not you can expect that market in the weeks/months to come.

If you want to develop a robust EA which works forever, look for systems developed before 1970 or so. If those systems are online today, someone must've thought they were worth the effort.

correct me if i'm wrong..

in my mind there is only 2 types of market.. trending and non-trending..

i like to play with small time frame and would code my EA to avoid one of the these while maximizing profit for the other.. sometimes i wonder should i move on to the higher time frame since this would be easier for me to decide if it is a treading market or not.. problem is since i am very particular in my trade, moving it to higher time frame would means less trade and very likely less profit.. even if most of them are the profitable ones.. plus the fact that these profit are not even guarantee since nothing is for sure in forex.. so i might as well put my money with the bank and let them invest for me. LOL

i thought of using a few EAs of different nature together and see how are the results.. whats your take on that Ronald?

Multiple EAs and systems are my bread and butter.

I classify the market into 6 types:

 

1. Flat
2. Choppy uptrend
3. Uptrend
4. Choppy Downtrend
5. Downtrend
6. Choppy sideways.

There are 6 types of EAs I use:

 

1. Trending
2. Ranging
3. Counter Trending
4. Scalping
5. News
6. Breakout

The mix of EAs I use varies depending on the market state I think I'm in.