Forex Expert Advisor(EA) is a type of trading software that can make automated trading decisions for traders. So, the trader can gain more profits, and the trading continues without the trader being present all the time.
However, as the EA became popular, it also became a target for scammers. Nowadays, many frauds showcase their EA products online to earn easy money, but if you buy them only one making easy money would be the scammer.
- Learn More about Expert Advisors (EA) – HERE
So, it is essential to recognize and avoid these forex EA scams. Scammers try their best to fool you. But there are some obvious clues that you need to look out for
High drawdown figures
When traders look at the trading result chart of an EA, they make the mistake of only studying equity curves. You should know that most EA has an upward equity curve. With a 99% modeling quality of an EA. Still, keep in mind that the EA is most likely useless if the drawdown figures are also high. Most traders overlook drawdown figures, but you need to avoid any EA with high drawdown rates. You can easily recognize this on EA that uses martingale strategy.
Long open trades strategies
Many traders prefer long-term trading strategies, so this point does not seem fishy initially, making it easy to fool people. Long term trades certainly have their benefits. However, only if the period is confined to a few days or months. It doesn’t make sense when an EA holds trades for several years. No matter how adequate backtesting results they show, it is always the best choice to avoid this EA.
The number of people using them indicates how popular is scalping strategies. Still, Expert Advisor that use scalping strategies doesn’t work most of the time because of the sensitivity of this strategy to spread and latency. However, if you have low spread and very low latency, these EA works like a charm.
Most traders depend on test results to know if a robot is useful or not. Still, you may not know that MetaTrader 4 Strategy tester doesn’t include for latency and variable spread tests, So these EA will work very well on the backtest.
This is why you may see scalping strategies working on one broker but failing on another one. Your trades will be ruined if your broker doesn’t have requirements EA needs. So this isn’t much of scamming right? No, because some sellers Minimum requirements don’t exist except for the strategy tester.
Unrealistic marketing messages
Some FOREX EA sellers promise things that are too good to be true, Such as high percentage growth returns like profit screenshots of millions of dollars. You need to know that making returns is not easy in forex trading, even if you are experienced and lucky. It is sporadic when traders make more than a 30% return in a month. If an EA Seller is claiming high returns, you need to steer clear of it. If EA can make a profit upward of millions of dollars, why do they sell them?
Untrustworthy Myfxbook Account
You can watch the trading results of an EA robot on site like Myfxbook. It is a platform for the FOREX trader community where traders can analyze their trading accounts and share their trades and results. You can observe the EA trading chart by visiting the Myfxbook account of the EA. This page comprises every detail about the trading of the specific EA, from deposits, balance, drawdown, gain, equity, withdrawal, profit, last update time, and more.
If you analyze the chart carefully, then you can understand if the account is genuine or it is a scam, such as:
You can trust the chart if the data is verified, but anything that is not verified is not reliable. Look at the top of the map and see if track record and trading privileges are verified.
- Last update
Most of the time, this is overlooked, but it is essential if you want to spot a scam and avoid it. Assume that an account has been performing well for some time. But when it starts failing to make more profits. They stop updating the chart and only display the time when it was making profits. So, Buyers can be easily fooled and think that it is a profitable EA. Always make sure to Check the chart last updated time. If it has been updated within hours or days, then it is okay. However, if it updated months ago, it would be more likely to be a fraud.
Low-Quality Content on The Website
Any person who wishes to sell products online most of the time has a well-designed website that attracts customers and helps visitors find what they want quickly(There are scammers with a beautiful site). However, when you search for EA online, you will come across some websites that are not helpful. You will not be able to find anything, like the features, plans, and product descriptions clearly.
- You can Check FOREX EA Reviews – HERE
Always Do a Google (any search engine) search about the EA. Most likely, there will be reviews about EA you are looking for.
Never buy from sellers only advertise and sell on places like Telegram, Youtube, Facebook, etc. Because 99% time, its a scam, and you probably won’t receive an EA or a reply from the seller.