Trading currencies can be quite profitable, should you know how to take advantage of the extended experience of other traders and implement long tested strategies that can bring you the most money.
And one of the most appreciated platforms, MetaTrader 5 offers you the possibility to trade safer, with the support of robots. However, not all robots are the same or offer the best results. The solution is to find the top expert advisors MetaTrader 5 and put them at work.
Some of those are free, others are paid, but the viability of the expert advisors (EA) doesn’t necessarily depend on the amount of money charged for them. It depends on the soundness of the program, that you can determine while testing the app. Some of the free EAs can bring you good results and help you take advantage of the fast growing currency market while the computer does all the trading for you.
What is an EA and how does it work on MT5?
First of all, a trading robot is an instrument that can execute orders, after it analysed the data it is programmed to monitor. And MT5 allows traders to create the EA, test it, update it depending on the tests results and let it trade independently. As a result, many traders share the EAs on the market integrated into the platform.
They are able to analyse instantly the volatile currency market, can process a very big data volume, and work around the clock.
Therefore, you have two options: either download a free EA and use it as such, or you can develop your own EA, based on your trading experience, in MetaQuotes Language 5 IDE (Integrated Development Environment).
Main features of the best free Forex expert advisors MT5
Let’s look at the first option: download a free EA from the MT5 market, where you will find hundreds of such applications. And depending on the programming, the robot can perform a wide variety of activities:
- Analyse news
- Monitor currencies evolution
- Send reports
- Copy deals
- Place orders
The expert advisors MT5 come in a wide variety of types, based on the strategy they are programmed to implement. Some use the moving average, some use complex algorithms that generate signals, all of them focusing on rules that protect you from making any mistakes in this complex currency trading market.
Most of the EAs you may find in the MT5 market are moving average based. However, they use different complexity degree, depending on the trading strategy:
- Simple moving average
- Multi-currencies moving average
The simple moving average EA closes a position when the slow moving average is higher than the high moving average and opens one when the situation is reversed.
In its turn, the multi-currency average does the very same thing, but it uses two currencies, instead of a single one. The multi-frame moving average evaluates the moving average in two-time frames and if the result is the same, it performs the open/close order. The crossover strategy analyses the moving averages in two periods, if the fast average crosses the slow average upwards, then it gives the buy signal.
Of course, these are not the only EAs available in the MT5 market, as some use a complex algorithmic program to determine the buy/sell periods, based on news from the market, events, trends etc.
Test the EAs before live trading
The best way to determine which robot works for you is to put it to a test. Even if the trading robot is free, this does not mean you will risk zero if you don’t test it. Before you start trading with real money, you need to see if the robot you chose was actually the one you needed. The top Forex robots for MetaTrader 5 perform well while testing in a variety of moods. But let’s take them one at a time.
And the major features you need to analyse are:
- Stress testing – random delay
- Different environment/different symbol testing
- Historical data testing
Once you downloaded the EA from the MT5 market, you will find the Test option in the navigation section. Now, the platform lets you stress test the robot using the random delay mood. Meaning, it will apply a delay from the sending of the order to the actual execution. You should test your robot in normal conditions and in random delay mood. If the results are significantly different between the two, then the robot is not what you need – it means that the EA is dependent on the quality of orders transmission, and needs specific conditions to earn money for you.
Different environment/different symbol testing
MT5 best EAs will bring more or less the same results, regardless of the brokers you use. This is why you need to test the robot you consider using more than one broker. Should the results be marginally different, it is a well-performing robot.
Another test would be to use a different currency or time-frame than the one the robot is designed for. If it crashes, you don’t need it. If it brings low profitability, or registers losses mainly, again, get rid of it.
Historical data testing
Another testing that will help you make up your mind is against historic data, to see how it would have traded in a certain period of time. One solution is to test against bad historic data. For example, use a currency pair with poor results over a period of time, and see if the robot applies the appropriate strategy to limit loss.
What to look for in a free EA
However, testing is not everything. Some developers try to improve testing results in the strategy tester by adding additional filters to avoid losses. How to spot these tricks? Rather simple. Don’t get greedy. If you see a high-profit pattern, don’t just assume the robot is the best out there. In the currency market, even the best strategy can sometimes, bring losses. So, yes, be suspicious when the winnings in the strategy tester are too big to be true. The same applies to the historic data testing. This time, it means the robot was overly optimised to show such results.
What top free EAs for MetaTrader 5 shouldn’t offer you?
- Huge profit factor assumption
- Huge profit for historic data
- Over optimisation based on external parameters
Check out our best free MT5 EAs in the table!
|Dark Cloud Cover and Piercing Line||Engulfing and MFI||Exp_Fast2||LeManTrend||Hammer and MFI|
|LibCustomChart||Lines CrossOver||Multik EA||Puria Method||Stars and RSI|
Building your own free robot
If you don’t find what you are looking for in the top free robots for MetaTrader 5, you can always build your own robot for free. That is if you are a little good at programming (and even if you aren’t). MQL5 IDE offers a Wizard that can help you make your personal EA.
Just punch in the parameters you need, and the Wizard does the programming. Once you compiled these parameters, you test the robot, optimise it and it is ready to work.
At this point, you go to the strategy tester and put the robot to test, to see how it performs in trading mode. The strategy tester is based on historic data. The robot performs transactions based on the algorithms implemented. All the testing we explained above is available: random delay, bad historic data etc. The strategy tester allows you to select the best input parameters so that in real trading the strategy works at it best.
The platform offers a wide variety of MetaTrader 5 expert advisors free, some promising better results than others. The testing of each free robot is fundamental to determine how well it works, how good a strategy it implements and if it fits your needs.
Do your testing based on a complex system that may pick up on potential glitches of the robot or hidden short-comes of the application. Some developers use programming tricks just to make users believe that their application is the Holy Grail of currency trading that does nothing but win.
Don’t be fooled by over-the-top results from the testing, as the application may be altered just so, in order to let you believe it does nothing but winning. And if a robot gets you results that are too good to be true, during the testing period, then that robot is not the one for you. On purpose or not, the developer tempered with the application to let you think it is more performing than it actually is.
Building your own free robot can be easily a solution for you if you are confident enough in your strategy and feel you can put it at work without having to be in front of the computer at all times. But this solution is for the most experienced traders, who traded in better or worst market conditions and know what to look for in the currency world.
In short, identify the strategy you want to use, look for the free robots on the MT5 Market that best fit this strategy, test it in several moods, based on several data, look for the potential glitches of the robots, and only then start trading in the real currency market.