Can anyone explain why EA´s dont work.
One of the biggest points of failures I've seen in EA's is poor risk control and money management....too much emphasis on getting into the trade and not enough emphasis on managing it thereafter. Another cause is volatility patterns that mechanical systems built with the usual smorgasbord of indicators can't respond to quickly enough which causes trades to go south. The markets are chameleons....they're in a constant state of change and most EA's are built based on a few algorithms that anticipate a certain price behavior.
Having said that, there are EA's out there that work well but you probably won't find them hanging out in public forums. 
Very good question.
As to my opinion so it is not easy to create EA.
For example your case with 8 MA and 26 MA crossing.
It's ok. Yesterday. may be. But day before yesterday it may be 10 and 30? And last month? may be 15 and 45. And tomorrow? nobody knows. next months? because we are taking some past data testing the systems and we assume that it will work tomorrow.
It should be two cases:
- we are telepathy people and can see the future;
- or we should test the system during the many months manually just to look how this system works in different market condition for selected pairs and timeframes. Basicly we should understand the price movement (why the price is moving?) and ask this question all the time we see the chart.
Because market is changing but this 8 MA is always 8 MA. And 26 MA is 26 MA for today, for tomorrow, and so on.
It should not work.
Because if we took one year for example so, generally, profit minus losses, may be ... But last year? So that it why we are calculating the profit weekly, monthly or yearly.
Market condition is changing almost every day and sometimes every hour but we do not change our trading systems and settings very often, we are not doing any analysis about which market condition will be tomorrow (with some probability) to select the 'right' trading system to use.
One of the biggest points of failures I've seen in EA's is poor risk control and money management....too much emphasis on getting into the trade and not enough emphasis on managing it thereafter. Another cause is volatility patterns that mechanical systems built with the usual smorgasbord of indicators can't respond to quickly enough which causes trades to go south. The markets are chameleons....they're in a constant state of change and most EA's are built based on a few algorithms that anticipate a certain price behavior. Having said that, there are EA's out there that work well but you probably won't find them hanging out in public forums.
Yes I agree.
- 3 years ago one trader said to me: "I saw some very good trading system (somebody was selling). This system may increase deposit on 70%. For example, you have $10,000 and after one year you will have 17,000".
- I said: "Just bought it".
- he replied: "no i don't believe. They are scams. Too profitable".
- I said: "why?"
- He said me: "i am not trading one months. I am trading for years. Can I believe that this system will be profitable in 2008 and 2009 for example? Of course no. And 70% in one year... too much profit ... don't believe".
indeed besides the fact that most EA's are tuned to one particular type of pattern. EA's that follow big trends do terribly in choppy/ranging markets and vice versa. It's extremely difficult to setup a system based on a few indicators that can manage trades in all market conditions.
Best case scenario is that you setup a portfolio of 5-10 EA's that each excel in one particular market condition. Breakout EA (Scalp possible), Trend following EA, Counter Trend EA, and Ranging EA.
Even better would be to turn off the EAs depending on market condition. So if the market is ranging you would turn off the Counter Trend EA and Trend EA and leave the breakout EA incase there's a breakout of the range and the ranging EA. But ofcourse if you're using multiple pairs this is also difficult to do! HOw can you determine what market is occuring and when?
All things to think about.. 
One other thought - a lot of folks get into trouble with EA's because their expectations are too great for how much profit they should or can make relative to the amount of capital they have available. There's a trail of destruction for countless people who have launched Firebird, 10Point3 and such risky EA's with starting capital of say $700 and initial trade lot sizes of .1 as an example. There's no room for error or tolerance for drawdown, and the likelihood of being wiped out is almost guaranteed. I've seen a lot of folks turn their noses up at medium-lower risk EA's that can yield 5% per month because they have unrealistic expectations.....maybe it's the hype and false hopes generated by all of those "EZ-Money Get-Rich-Quick" Forex scammers.
One other thought - a lot of folks get into trouble with EA's because their expectations are too great for how much profit they should or can make relative to the amount of capital they have available. There's a trail of destruction for countless people who have launched Firebird, 10Point3 and such risky EA's with starting capital of say $700 and initial trade lot sizes of .1 as an example. There's no room for error or tolerance for drawdown, and the likelihood of being wiped out is almost guaranteed. I've seen a lot of folks turn their noses up at medium-lower risk EA's that can yield 5% per month because they have unrealistic expectations.....maybe it's the hype and false hopes generated by all of those "EZ-Money Get-Rich-Quick" Forex scammers.
I completely agree.. 5%/month is 60%/Annual! Most professional hedge funds cannot get anywhere near that much!! Not even close!
SO umm care list the ones that yield 5%? ;-)
I completely agree.. 5%/month is 60%/Annual! Most professional hedge funds cannot get anywhere near that much!! Not even close! SO umm care list the ones that yield 5%? ;-)
Ok...you asked for it....
Rather pricey but performs even better than stated. I own it and have been running it for several months.
How do you define the Holy Grail? (forex version)
Isn't an EA earning 5% a month safely and consistently the Holy Grail? I know such EA's do exist but not on public forums 
... On public forums you can find EA's earning from 5% to 100% a month. But are they really safe? You will find out the hard way.
I think people have to think outside of the box otherwise they are limiting themselves and if they believe 70% a year is too good to be true they will never be able to earn it... because of their psychological limits.
Have a nice day.
p777m
One of the biggest points of failures I've seen in EA's is poor risk control and money management....too much emphasis on getting into the trade and not enough emphasis on managing it thereafter. Another cause is volatility patterns that mechanical systems built with the usual smorgasbord of indicators can't respond to quickly enough which causes trades to go south. The markets are chameleons....they're in a constant state of change and most EA's are built based on a few algorithms that anticipate a certain price behavior. Having said that, there are EA's out there that work well but you probably won't find them hanging out in public forums.
Where are these EA's???
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