Misconception about Expert Advisor Trading

Many regard expert advisor as a set-and-forget system that will bring in money with little or no effort.

They believe in its past performance and hope it continues to outperform the market.

It is better to leave the running EA uninterrupted and the system will eventually yield the best trading results.

The potential upside is unlimited and you can hit the ultimate jackpot by growing your account exponentially.

I used to have the above thoughts too.

After more than two months running of my own expert advisor system, I am back to face the reality of trading.

Now I regard EA as a useful program which helps me diagnose and enter the market consistently.

It can correctly open trades with the right position sizing based on own defined risk limit.

My new objective is to make a living (steady income) via EA trading by generating consistent daily/weekly profits.

When I see fit, I will not hesitate to book any trading profits presented to me even though their price targets are not fully met. I believe in the random walk theory:

The markets always take a random and unpredictable path. The chance of a price going up is the same as it going down.

Now, I also have a daily profit target in place. If the target is met for the day, I will try reducing the risk exposure of the following trades to preserve winning for that day. I will do the same to limit trading losses.

See related post: Measuring Trading Performance of My Expert Advisor System