DAY 20: Checklist to distinguish suspicious EAs and bad EAs

Last time (DAY 19), we talked about the importance of updates and maintenance to operate an EA stably over the long term.
However, in the world there are many EAs that hype expectations with excessive advertising or dubious methods—“suspicious EAs” and “bad EAs.”
This time (DAY 20), let’s整理 to the checklist to discern such EAs before purchasing and implementing them.
To prevent large losses, it is important to have calm decision-making material in advance.

1. Are high win rate or monthly returns overly emphasized

• “Win rate over 90% and monthly returns of 50% are consistently achieved!”
  Be careful of advertisements that blatantly present unrealistic numbers like this. There is no guarantee in the market.

• Win rate and risk balance are unclear
  There are EAs with extremely high win rates but with such poor risk-reward that a single loss is large. Do not judge by numbers alone,check drawdown and average losscarefully.

2. Emphasizing backtesting only, with no forward test or real performance

• Backtest results are only fit to past data
  There is a possibility of overfitting to past charts.

• No forward tests or real account performance
  To increase reliability, continuous disclosure of demo or small real account performance is important. If only backtest results are shown, be sufficiently cautious.

3. Are there unnatural points in the operation history

By checking the operating history released by the EA seller on Myfxbook, Fxblue, etc., you can spot irregularities in detail.

• A curve showing almost no drawdowns and all wins
  Markets fluctuate; a consistently rising curve with never a negative period may be suspicious.

• Only partial trading history公開 or sudden large changes
  It could be that only a period of high profits is shown or the history is interrupted to hide large losses.

4. The logic overview is completely opaque

• “Because it’s a trade secret, no explanation at all”
  I’m not asking for full disclosure of details, but at least provide an outline like “trend-following or mean-reversion” and “which indicators are mainly used.” Without this, you cannot assess risk.

• Unnatural jargon or meaningless phrases
  Even if claims like “state-of-the-art AI forecasting” are used with fancy words but no concreteness, the actual situation is unclear. Suspect exaggerated advertising or false labeling.

5. Excessive “leave it alone and easy win” appeals

• “Just by watching, you can earn tens of thousands of yen per month!”
  Be wary of such slogans. Indeed, EAs trade automatically, but if you leave them unattended without maintenance, market changes can cause large losses.

• The operator themselves do not discuss the importance of maintenance
  Trusted developers or sellers honestly explain both strengths and weaknesses and hint at the necessity of updates.

6. Past user feedback is extremely negative

• Buyers’ reviews and SNS comments
  Platforms like GoGo Jungle allow you to check real users’ evaluations. Extremely low ratings broadly or consistent high ratings from a single user should raise caution.

• Support system deficiencies
  EA with no after-sales support, or no contact or update notices after purchase, may cause trouble if issues arise.

Summary for today and next time

• Be cautious of exaggerated expressions like “EA will surely make you money” or “will win 100% by leaving it alone,” and objectively check numbers and history

• In addition to backtests, verify forward tests and real operation results, andnot be misled by unnatural graphs, excessive win rates or monthly returns.

• Be wary of sellers whose logic is too opaque or who say nothing about maintenance

Next time (DAY 21), with the theme “How to spot an excellent EA—practical case studies (conceptual only),” we will further organize the characteristics and checkpoints of excellent EAs. Learn perspectives to avoid being scammed by shady EAs and to meet truly valuable EAs.

Introducing the EAs I sell

To avoid losses in choosing an EA, it is important that solid verification results and real operation performance are presented.
Please take a look at the EAs I offer as well, if you’re interested.
https://www.gogojungle.co.jp/users/147322/products

Choosing EAs with proper information disclosure and support structure may allow you to start operations with reduced worry and risk.

In the next article, we will delve deeper into the characteristics of an “excellent EA.”Please
press “Read more” and continue learning.