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Why EA's Haven't Worked for You in the Past: Understanding the Pitfalls

Why EA's Haven't Worked for You in the Past: Understanding the Pitfalls

Are you among the many traders who have tried Expert Advisors (EA's) in the past, only to be left disappointed by the results? If so, you're not alone.

In fact, many of the traders that join POW have encountered challenges and setbacks when it comes to implementing EA's into their trading.

Which is why we at POW decided to do things differently…

You see we’ve been there and done it, we’ve learnt what works and what doesn’t - and more importantly we’ve created solutions to the problems.

But first, let's dive into some of the reasons why EA's may not have worked for you in the past and explore how the POW Banker EA/POW might just be what you are looking for.

  1. Lack of Knowledge and Understanding Around Backtesting

One of the common pitfalls of using EA's is a lack of knowledge and understanding around back testing.

You see the beauty of using an EA is the fact that it can do all the heavy lifting for you - automating your trading whilst you go about your day to day life.

However in order to make this as effective and as profitable as it can be, you really need to have a thorough understanding of backtesting methodologies, the benefits and their limitations.

Often traders fall into the trap of overestimating the effectiveness of their EA and overfitting their strategies.

  1. No Walk Forward Phase Analysis

Another critical aspect often overlooked when using an EA is the absence of the walk forward analysis phase.

While backtesting provides insights into past performance - using historical data - the walk forward phase is essential for validating the robustness of the trading strategy in real-time market conditions. 

Without the walk forward phase, traders may struggle to adapt their EA's to the ever changing market conditions effectively and it could be the difference between you seeing success with your EA or not.

  1. Being Sold the Dream of an EA Being a Plug n Play System

Another reason why EA’s probably haven’t worked for you before in the past is simply because you’re being sold a dream that an EA is a ‘plug and play’ system.

Set and forget so to speak.

So whilst you might see some results at the beginning, you’ll 99% of the time see those results fall off a cliff as you are unable to stay in line with current market conditions - as the EA tends to only work one way and one way only.

The problem is that the traders expectations are often misaligned with the realities of trading.

You’re then left with a trader who expects instant success - with minimal effort - and 9 times out of 10 will find themselves disappointed by the performance of their EA and want to quit trading altogether.

  1. The EA You Bought Only Trades One Way and One Way Only

Some off-the-shelf EA's are designed to trade only under specific market conditions or follow a single trading strategy.

This lack of flexibility can be detrimental in dynamic and evolving markets, where different strategies may be required to adapt to changing trends and market conditions.

Traders who rely on rigid EA's may struggle to capitalise on diverse market opportunities effectively. 

And one of the things we’ve learnt at POW is that there is no ‘one size fits all’ approach.

  1. Inability to Stay in Line with Market Conditions

The forex market is characterised by constant fluctuations and changing trends, requiring traders to stay agile, responsive and in line with market conditions.

However, some EA's lack the ability to adjust dynamically to evolving market dynamics, leading to suboptimal trading outcomes.

This goes back to the trader having a lack of understanding around backtesting and missing out the crucial, walk forward phase.

Traders who fail to stay in line with market conditions will often find their EA's underperforming or generating losses at the first sign of volatility.

  1. Lack of Education and Support to Go with It

Perhaps the most significant factor contributing to the failure of EA's is a lack of education and support.

Successful trading is not just about having the right tools; it's also about understanding how to use them effectively.
Because even the best tools and products in the world can go to sh*t in the wrong hands.

Trading is a tough industry and without the necessary knowledge and support that you need, it’s very difficult to be successful - especially when trading with an EA.

So, with all that being said…

What sets the POW Banker EA apart from traditional EA's?

At POW, we understand the challenges and pitfalls associated with automated trading, which is why we've developed the Banker EA with a unique approach.

  • Diversified Trading Strategies

Unlike rigid EA's that follow a single trading strategy, the Banker EA has been designed to cover ALL market conditions.

Whether that be trading with the trend, in a ranging market or trading against the trend/reversals - we have the ability to cover all of them.

We even have built in indicators such as RSI, EMA’s and ADX to make these strategies even more effective.

  • We EDUCATE Our Members

We believe that education is one of the keys to being successful inside POW.

Which is why we have built a simple to follow - but extensive - education library to accompany the POW Banker EA and our Red Alert EA.

There's no stone left unturned and we cover absolutely everything you need to know, to ensure you know and understand what it takes to make our EA work for you.

We even hold a Live Q&A session, each and every week to give our members valuable insights into what's working for us and also to give them the opportunity to ask any questions that they have or on things they might be unsure of.

It’s a great way for members to improve their trading skills, as they’re always filled with golden nuggets that they can take away and implement into their own trading strategies.

  • Comprehensive and Unrivalled Support 

At POW, we believe in empowering our members with the knowledge and support they need to succeed.

Which is why we provide comprehensive support to our members, ensuring that they are equipped with the tools and resources they need to thrive in the forex market.

Not only do they have the POW Team on hand 24/7 - ready to help - but they also have our thriving and supportive community to turn to if they get stuck or need some advice.

The power is in the community and that's something we have in abundance.

In conclusion, while EA's may not have worked for you in the past, POW offers a fresh approach that addresses the common pitfalls and challenges associated with automated trading. 

POW provides a powerful solution for traders looking to achieve success in the forex market and our results speak for themselves.

If you're ready to take your trading to the next level with the POW Banker EA, we invite you to join our community today by filling out an application form below and experience the difference for yourself.

>> Fill out application form here <<

Happy trading!

The POW Team.