What is an EA?

A Forex Expert Advisor (EA) is a program capable of performing any action following the instructions of a programmer/trader, without direct intervention. All tasks are performed automatically without human emotion, which is why the advisors are called experts or mechanical trading systems.


Performance.

The EA is a highly specialist compound positioning & hedging and trading algorithm.

It’s development to finished product took over 12 months of programming and over 14 months of testing in live market conditions. The programming was conducted using 99.98% accurate modelling date, which eliminated the risk of manipulation. The EA was tested over 19 years of modelling data to ensure that it could operate in all average market conditions and extremes. The EA is designed to be low risk, with minimal drawdown. It targets 15-20% monthly ROI, however it is capable of higher returns (as recorded in our live data feed.)

The EA is highly optimised and has a full time programmer ensuring that the data is operating as per its parameters. The Forex market is a very fluid and ever changing environment, therefore this level of optimisation ensures that it remains consistent and that everything is operating as it should be.


How does it work?

The EA places trades on pre-defined currency pairs.

It has several parameters that are required to be met before it will place a trade, which include;

  • Volume and Liquidity

  • Market trend

  • Institutional support and resistance levels

The most advanced aspect of the EA is its ability to compound position & hedge a negative position to close out in profit. This ensures that drawdown is not recorded as a loss on the account, but actually a holding negative position.

These positions will always close out in profit as the EA Algorithm will calculate new positions at key levels, which have a higher leverage. This enables a profitable outcome when the market retraces.

If for example a buy position has an extreme ‘selling’ market against it will calculate the existing hedge risk and open a new hedge in the opposite direction. Eventually closing out in profit.


Risk Management.

The EA has several risk parameters programmed within the algorithm to ensure that risk is managed. It does not over trade or expose the account to extreme risk. Average daily drawdown is between 1-5%. A more extreme hedge could see drawdown rise to 10% and in an extreme event could rise to 20-30%. A full hedge would occur at approximately 40% drawdown.

The main point to remember is that this system will manage drawdown and close the positions out in profit, so the account will not suffer a loss. The EA will actively secure profitable positions by moving a SL into a risk free position once the trade is into profit. This ensures that profits is regularly taken and reduces risk. In some cases a smaller profit may be taken, but it's a consistent way of securing profit. The EA is designed for long term investment and therefore risk is very low. It uses very small lot sizes and protects the account at all times. The EA has programmes that cover extreme events that are rare, but if in case they did occur then it would be able to cope.

The daily profits are generally between 0.5-2%, ensuring that profits are taken quickly and effectively. If a hedge occurs then this will increase drawdown. However, risk is still low and even at 5-10% it’s not dangerous to the recommended minimum account.