Common mistakes of Forex EA rentals

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Forex Expert Advisor is also called Automated Forex Trading. Automated means there is no action required from the trader. The sole job of the trader is to insure that MT4 is running 24/5 on the server (if you are not renting our VPS).
What is the main issue of any Forex Strategy? Emotions. Under emotions, we get greed, fear, euphoria, madness, etc. And then we deviate from our strategy, which most often leads to another ruined account.
My main goal with creating EA is to get rid of emotions and to get more free time. And I achieved both.

So why some traders who rented Ultima EA, are behaving differently and manually modify trades?

These are some typical answers I got from client’s feedback, and I will address each.

“I deleted some trades and I avoided a loss”
Yes, I’m sure you can do that sometimes. I am very accurate at technical analysis and sometimes I know almost for sure, that some trade will end up in loss. Even then I don’t intervene because I know that will lead me to unknown path and that in the long term, I will very much deviate from excellent Ultima performance.

“I modified target to exit earlier. I noticed that Ultima had target too far, which at the end, end up in a loss”
It is very bad to evaluate system after few months of trading with it. This is a long term system, which was not optimised to give the best results possible in the last few months, but to provide you with great results each year back and forth. They are very logical and long term. Traders usually notice only bad trades, but we had so many live examples of just how accurate targeting on Ultima is. Many times, especially in the last few weeks, the price reversed after just a few pips from our target.
Anyway, I noticed that some subscribers modified their targets and instead 90 pips, they got 18-40 pips. That is a drastic loss of performance.

Example from the last trade (1.9.2020.)

“I got into draw down so I withdraw some of the money, and after we got again into profits, I reinvested”
Sad, but this is a typical retail behavior. Quite the opposite of how the professionals trade. If we know historical maximum drawdown, and we do, which is 50%, the best outcome is to invest more at the point of high drawdown and pulling part of the money after profits are made. That way, you will even earn on draw down. Feel free to check Myfxbook of Ultima and notice at what time I invested more money. 9th of August, at the time draw down was nearing 50%. What happened afterwards is that I got a huge money return almost instantly because large profit was expected at that time. Unfortunately, many clients (again) pulled part of the money at that point, and reinvested AFTER profits. And again, you got worse results than I do. You don’t have to reinvest of course, but if you withdraw at the time of the drawdown, of course you will have much less profit than I do.

Conclusion
If you see a system that generated 1000% profits in the single year of live trading, why you think that isn’t enough and you want to do better than that? Most likely, in the long term, you will go under emotions and get much worse results for yourself. Instead, try to be disciplined and don’t interfere with trades. I myself have been checking my account once a week. There is no reason for me to check on trades. And I am more than happy with Ultima performance and my income, which is now around 70 000 euros on my 2 Ultima accounts (5% and 3% risk), proving that Forex can be indeed very profitable.

Mislav Nikolic
CEO Bull Capital

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