Thursday, April 1, 2010

Ten Things Expert Advisor Sellers Should Change

Those of you who have been following my website for a while may know that I have written hundreds of reviews and posts about different commercial expert advisors. I have been involved with the subject of expert advisors since its start in early 2007 and I have always found the way in which many of these system creators approach the selling of their trading systems wrong. I have always maintained my opinion unbiased by refusing any affiliate income generated from these sources and I have always given my true opinion based on analysis and experience about the profitability of each one of these systems.

Today I want to write a post gathering what I have seen happening for the past 3 years, a post which attempts to SCREAM at EA sellers what they should change and at EA buyers what they should demand. The following paragraphs will cover the 10 main aspects I think EA sellers should change and what I suggest they should do about it.

1. False Claims. Stop saying things which are NOT true. It is dishonest and unethical to say things which are simply NOT the truth. Why are Expert Advisors saying their system turned 1000 USD into 10 million if there is no real, verifiable live trading record to show so ? This first change is exceptionally simple and it will reduce most of the other problems a LOT, simply do NOT lie to people. As I said in a previous post, either you're honest or you're not. I simply ask EA sellers to be honest.

2. Don't lie about your story. I don't know about many of you but I am SICK of being lied to in such a bold-faced manner. Most EA sellers tell us the story of how they were bankrupt and they had no hope when suddenly they were illuminated and started to make a killing in the forex market using an automated trading system. Please, EA sellers should have some respect for our intelligence. If any of these stories had any truth to them, they would include a live, verifiable track record to show all this experience. Why would an EA author deny to show proof if he or she indeed made a killing ? Again, EA sellers should tell the truth and this includes their stories.

3. Tell us who YOU are. I am sick of all these made-up names. What are this EA sellers so afraid of that they don't tell us their real names ? If you search for the people on all the EA sales pages you'll find that most of them are NOT real people but "made up" guys used for marketing purposes. This is so that you cannot distinguish the same scam artist over and over again. Come on, I work a lot in forex automated trading and I am absolutely PROUD of it. My name is Daniel Fernandez and you can see that I have experience in the field, look for my published articles, read my blog, add me to your facebook, etc. I am a real flesh and blood person, why can't EA sellers have this same approach ? If you are honest and you have a product you want to sell because you really believe in it then back it up with your name and your experience, as simple as that.

4. Stop the affiliate marketing. I think that affiliate marketing is the worst thing that has ever happened to the automated trading industry because it encourages the selling of a trading system regardless of its real potential to be profitable. Most of the EA "reviewers" out there are actually not true reviewers but affiliate marketers who are going to say ANYTHING they can to get you to buy a trading system. Affiliate marketing - in my opinion - causes only negative results for the final consumer since finding unbiased reviews becomes much harder and the volume of spam becomes much greater !

5. Put you money where your mouth is. I simply cannot believe that so many EA sellers are trying to sell systems without even running a 100 USD live cent account to show us all the "wonders" their system can do. Why can't they put their money where their mouth is if their systems are so good ? It is quite obvious to me that if you are selling a product which is supposed to make money trading, then that is what you should be doing with it, even more so if you are selling it since you are telling people that they will be able to do the same thing "you do". It is not that hard, every EA seller should open up an account (in my opinion they should be at least a dozen on several brokers) to prove what their system can do. If their system is so profitable, what is the problem ?

6. Don't sell untested systems. One of the first things I learned in life - which is something I definitely owe to my mother - is that you should ALWAYS think about other people. When you are selling a system or making it available to other people you must think that they will most likely put some money into it and hope for it to be profitable. I wouldn't be able to sleep at night if I was selling something which was not as proven as it could. Expert advisor sellers should realize that their systems will be traded in live accounts by people and they should therefore make their BEST effort to ensure they are going to preserve people's capital as much as they can. Providing 10 year back tests and live tests is therefore VITAL to sell a trading system.

7. Provide third-party verification. In today's world of con-artists who willingly modify their live statements or provide forward tests as live tests showing us some amazing results of a trading system it becomes ESSENTIAL to have third-party verified live tests. By third party I mean that you should either provide the statement with investor access information or have the investor access confirmed by a third party such as myfxbook. This is both to confirm the REAL money character of the account and the unaltered character of the statements. Almost NO expert advisor sellers do this and the reason is mainly that their results are probably not as wonderful as they seem.

8. Do NOT lie with your marketing. Something I consider very important is NOT to pressure people to buy something by using tactics such as "very limited number of copies available", "only 10 left", "only till today", etc. I think that expert advisor sellers should NOT say these things if they are NOT true. Why would you say that only 10 copies are left when the truth is that you will sell as many as you can ? In my mind there is no point in doing this since good systems sell themselves through their evidence, not through the use of cheesy marketing tactics.

9. Make a STRONG emphasis on risk. One of the topics which I always talk about to new traders and I emphasize on both Asirikuy and this blog is capital preservation. As an investor, preserving my capital is always my primordial concern, with profit being secondary. Expert advisor sellers NEVER put an emphasis on risk. To me, a person should know EXACTLY what he or she is getting into before buying a system. There is no point in hiding the truth and I consider that the most ethical thing to do is to talk openly about the realistic risks of a trading system.

10. Stop using unsound trading tactics. I think that it is extremely important for commercial EA sellers to stop using trading tactics which have been PROVEN to be EXTREMELY risky for any account. For example, the use of Martingale type money management is frequently found on commercial trading systems. While these techniques are popular amongst new traders because they seem to offer "great profits" in the end they ALWAYS cause account wipeouts.

In the end I think that what I am trying to say is that expert advisor sellers should be more educated, honest and ethical. If a person is selling software which is supposed to be profitable then one should do it in the most honest possible way. I am sick and tired of all the marketing tactics, lack of evidence and efforts to sell systems which are obviously dangerous to people's capital. I am tired of reading all the obviously false stories and all the "only 10 copies left" signs. In the end, as many of you, I am tired of the hype. Expert advisor sellers should address their business as a business to make their customers profitable NOT as a business to get their customers to buy any piece of trash from them.

I hope you liked this post about expert advisor sellers, hopefully some of the above suggestions will become truths as the forex automated trading industry evolves and customers become more aware. If you would like to learn more about what I have done in automated trading and how you too can seek for a profitable road in automated trading using systems developed with sound trading tactics and realistic risk/profit targets please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

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