9 Tips to Improve the Performance of Your Forex EA

Performance of Your Forex EA

Forex EAs are a true blessing for Forex traders. The smart and sophisticated algorithm program discovers new opportunities for traders according to their predefined conditions. Furthermore, Forex EA trades around the clock, saving you plenty of hours to look after other areas of your life than just the Forex market.

But…is Forex EA all unicorns and roses? Or can it fail you in the market and risk your hard-earned capital?

Forex EAs are no miracle to help you score profitable trades every Time. They are computer programs that act on your set parameters. Thus, do not think of it as a profit-reaping machine. A Forex EA’s performance greatly depends upon your curated trading strategy and EA’s efficiency.

If you’ve invested in a powerful Forex EA with hopes of earning good profits, a little help from our side can enable you to master the art of automated trading. We have curated a list of 9 tips to transform your generic automated trading to a top-notch level.

Keep reading to bring the most out of your existing Forex trading robot EA and enjoy handsome profits:

9 Tips to Improve the Performance of Your Forex EA

9 Tips to Improve the Performance of Your Forex EA

1. Take Advantage of Market Situation

The first tip is to make your Forex EA adaptable to multiple market conditions. Many beginners make the mistake of not making their EAs adjust to dynamic market conditions.

Now, it is impossible to tweak changes in Forex EA to make it adaptable to every market type. However, traders can adjust its settings to make it work perfectly under special conditions and use it only when such conditions arise.

Let us present you with an example here:

The Forex market is trending, and a trader uses an EA that is adjusted to perform in trending markets. On the other hand, if the market is choppy, the trader can switch it up and use its range trading EA.

Moving on to the 2nd tip:

2. Allot Funds According to Your EA’s Performance

Ask yourself a question and be honest and considerate while answering it:

How much am I willing to allot funds to my best and worst performing EA?

Suppose a trader underfunds its best-performing Forex EA. In that case, they are shutting the doors of welcoming good profits in their trading accounts. Whereas, if a trader overfunds its worst-performing EA, they are willingly throwing themself into hot waters.

Hence, before allocating funds, be mindful of your EAs performance in the past.

Moving ahead, the 3rd tip is to…

3. Always Keep an Exit Plan Ready

There is no secret that the Forex market can become ruthless and strip you of your investments. How will you save yourself if things become unfavorable in the market? Or if the range trading Forex EA gets trapped in a breakout?

The advanced Forex players have a deep and clear understanding of different market conditions. Because of their ample knowledge about varying market conditions, they devise a safety plan to protect themselves when things become sour.

Thus, ensure an exit plan when the market takes an unfavorable turn.

Up next, on number 4, we will talk about:

4. Make Proper Use of Non-Correlated EAs

Many traders undervalue the use of non-correlated Forex EAs. But did you know that you can cover all your bases by using multiple non-correlated EAs over different timeframes and trading strategies?

Make Proper Use of Non-Correlated EAs

Let’s take an example here:

A trader has an EA that performs well in the short term. He can build one that also performs well on daily charts. Similarly, a trader has an EA that performs well in the long term and majors. Hence, he can program one for trading exotic currency pairs.

Diversifying your Forex EA will enable you to trade more robustly. Moreover, having diverse EAs will cover up the poor performance of some EAs with excellent performing EAs.

Moving forward, on number 5th, we have:

5. Trade on a Low Spread Account

Traders love it when they get good returns. One simple tip to maximize your returns is to trade on a low-spread account, which will help you cut costs. Furthermore, trading on a high-spread account exposes the trader to 2 risks:

  • High spreads mean high costs, which lowers the profit.

  • There is a high probability of losing trades in a high-spread account. The wider the trader spreads, the more they will get stopped out.

Thus, always opt for low-spread accounts to maintain distance from these risks.

Up next, the 6th tip is:

6. Trade Less When in a Drawdown

Remember a simple rule of thumb: “Reduce the size of trades when Forex EA experiences a drawdown.”

You must spend considerable time analyzing the Forex EA. It will help you to gauge your EA’s performance over time and under varying market conditions. Doing this will help you to recognize the losing period. Consequently, you will be better positioned to reduce your trade size.

Moving ahead, on number 7, we have our next tip:

7. Reduce Your MT5 or MT5 Workspace

Execution can make a huge difference between successful and unsuccessful trade. Remember the phrase, Time is money? This phrase fits perfectly well in the Forex market. Every single second matters in this market.

One simple way to speed up execution is to reduce the open windows in MT4 or MT5 workspace. The execution speed will improve considerably by closing the opened windows and other heavy apps.

Up next, we have:

8. Use Live Data for Backtesting

Suppose a trading strategy looks promising in your head. In that case, it doesn’t guarantee that it will bring promising results in the live account. Thus, never forget to backtest your strategy on past records before applying it to your live trading accounts.

Many beginners fail to test their strategy, and due to that, they lose their money.

The last tip on our today’s list is:

9. Use a Co-Located VPS

It would be a perfect fantasy if your Forex Expert Advisor executed orders instantly. But, the good news is you can experience this fantasy by using a co-located Virtual Private Server. Using a VPS, your EA is placed on VPS’s data center, which you can access via the internet.

Using a VPS will reduce delays and improve EA’s reliability compared to running on your own server.

In a Nutshell

In a Nutshell

A powerful Forex EA can be your best friend to ace trades and gather huge profits. If you are a beginner, get started with automated trading by applying the tips above.

Suppose you are an advanced trader with substantial experience in automated trading. In that case, these tips will help you get increased output and lower your losses.

Read Also : What Successful Forex Traders Do?