EA has a good period, now comes the bad period?

[Anonymous]

Hi,

every strategy has good and bad times. We detect with our instruments (FX Blue) which strategies are at the top for the moment. Now, if strategies are now at the top, a bad time must normally come for them. How can we deal with the idea that statistically now may come a bad time for strategy?

In other words, we select through FX Blue the best strategies of the moment, but isn’t statistically clear that now is coming bad time for them?

 

thanks

Sebastian

[Anonymous]

Hi Sebastian,

Not necessarily. An EA can perform well and be profitable of any length of time. Sure, there will always be unprofitable periods, but we don’t know when that will be. It could be tomorrow, it could be in a month. So, the best thing to do, is to continue analysing the performance of the EAs in current market conditions, and if the EA fulfills the criteria you have set, there’s no reason to believe it will become unprofitable immediately after it performed well. However, it is still advisable to keep an eye on your live account, and if the EA has a few consecutive losses, remove it. That’s what I do.

 

Ilan

[Anonymous]

Thank you Ilan, you are very kind.

[Anonymous]

No problem :-)

[Author]

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