Thursday, November 1, 2007

Finding the Best Expert Advisors

It was my intention to find out more about the performance of some well-known EAs out there. But, thanks to CK. He is already undertaking some serious foward-testing and generating live trading statements from them.

Finding the Best Expert Advisor
...for a few months now, i’ve been actively exploring into this area… searching for reliable Expert Advisors, testing them out by back-testing and, most importantly, forward-testing. forward-testing is the act of running the automated trading system/strategy live, but trading on a paper/demo account that some brokers provide. forward-testing gives the investor a good feel of how the Expert Advisor trades and reacts (or not) in different market conditions. forward-testing is KEY in determining if an Expert Advisor is good enough to trade with real money. it’s as close as you can get to trading live.
Portfolio of Expert Advisors.... Will It Work?
...no -one will ever build an EA that will be suitable for every set of trading conditions. I have worked in currency trading at a few of the bigger banks, and in my experience most banks that run quant models will have 3 models, a trending model, a mean reversion model and a carry trade model. I guess the trick is in how they interact with each other and how you balance the differing signals.
Related posts:
Finding Profitable EA Systems (1)
Top 5 Reasons for Using Mechanical Trading System
My Expert Advisor Goes Live (3)

2 comments:

CK said...

hi Lloyd,
thanks for linking to my blog :O)
wishing you all the best with your Expert Advisor. - ck

Lloyd said...

You're welcome. You are doing a great job!