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Rafal W edited this page Apr 29, 2021 · 11 revisions

Please trade responsively and follow the following safety hints to avoid any surprises.

Basics

  • Take some time to get familiar with this trading robot (EA) and its settings as it is not Turn-on-and-forget robot. Otherwise, it is like owning a Porsche, despite of high expectations of such high-end car, you can easily end up in disaster if you don't know how to drive with it. All you need to do is to learn more about EA, market, platform and broker that you're using.

Risk

  • Never increase any lots or risk criteria if your trading is going well as EA will do that gradually as your balance increases.
  • Always backtest the current settings for few weeks or so before using them in real trading.

Backtesting & optimization

  • The backtest results can't predict the future prices, these are just for the reference. It demonstrates how EA manages the risk and adjust to different market conditions in general.
  • Backtest results can vary depending on your account features (such as account leverage and available deposit/equity/credit), as well as on the broker's and symbol's parameters such as pair (e.g. EURUSD), differences in tick data prices, spread/commissions, supported contract/lot sizes (preferably micro accounts), minimum stop loss levels, free/required margin for one lot and so on.
  • EA has been backtested with flat spread 10 using a 5-digit EURUSD pair (equivalent to 1 point spread for a 4-digit pair). The higher spread, more losses can generate. Please be aware, that during high market volatility, some broker can increase spreads significantly which can generate more losses, than profits. Optimal spread is 10 or below, maximum spread to trade with is around 20. If your spread is higher than 20, EA will generate more losses than profits.
  • For backtesting, the preferable timeframe is M1 to process more bars.
  • When backtest results aren't good, check whether you're using a reliable method, otherwise consider running optimization.
  • Note that, the proper backtesting/optimization isn't an easy task. If your method is not reliable, then you're optimizing EA on the wrong assumptions (testing on the wrong data, conditions or configuration).
  • Check Backtesting docs for further details.

Real-time trading

  • Profits cannot be guaranteed. The best is to test EA on the demo account at least for a few weeks or so, to check whether it works for you or not. Only progress to live, when you're happy with the results.
  • On real-time trading, you can place EA on any timeframe, it should not matter as EA reads data independently of the current chart (as far as all timeframes are active).
  • Make sure that EA is running constantly (24h/5d) and the network connection is good. Therefore, it's recommended to run it on VPS.
  • Don't restart EA too often, as it can affect the overall performance. It resets the statistics (e.g. success rates of the strategies, which are one of the main advantages of this EA).
  • Don't mix multiple EAs on the same account or on multiple pairs. Despite EA can load its own existing orders without issue (based on its magic numbers), mixing it with other EA can still affect the overall performance, since its strategy can rely on the account equity or free margin left (it can affect account statistics such as detecting profitable days/weeks which can execute wrong conditional actions). Basically, when another EA gets your account into losing state, this EA will "think" it's doing something wrong and can take some unnecessary actions.
  • It's strongly recommended to run EA on EURUSD pair only. Unless you did successful optimisation work to perform on other pairs, or you're running it on the demo account.

Broker

  • Be aware of your broker spreads and commissions before starting.
  • High spreads can easily kill your profits. Therefore monitor EA during high volatility period and be aware of how your broker's spread changes.
  • Use a broker which supports micro lots (such as 0.01 for 5 digit precision pairs). According to backtest results, when using 0.1 as minimum lot size, you'll get more losses, because EA will not have enough flexibility of trades to learn about the market condition and the success rates (even with 100k accounts).
  • Do not use EA in accounts with spreads above 20 points without proper backtesting or optimization (20 points for 5-digit pair, equivalent to 2 points for 4-digit pair, equivalent to 2 pip spread).
  • The higher your leverage is, the higher the risk/reward. So if your account's leverage is higher than 1:100, expect much higher risk, otherwise lower your leverage. For example, if your leverage is 1:200, you can double the profit, but conversely, you would also lose twice as much.
  • Note that not all brokers allow hedging. If your broker doesn't support hedging, EA won't work.
  • Be aware of scam brokers. Always check your broker at FPA.