What is an expert advisor?
An expert advisor is an automated trading strategy, executed by a trading platform called “Metatrader”.
This platform enables the developer to back test the coded strategy, in order to evaluate its performance.
How do I determine whether an expert advisor is worthy?
First of all, we need an accurate tick database, which will be used through the stage of back testing.
A good expert advisor should yield a lot of trades, be profitable in a long time period. The trades themselves should be uniformly scattered on the time axis. Why? These terms guarantee a good and reliable statistics through time.
My goal is to develop an expert advisor which will yield in a year profit factor of 1.5 or higher, an average of 1 trade per trading day, with a drawdown of 15% or lower.
After that stage, forward testing will be needed before live trading.
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