Do Expert Advisors Work in FOREX?
There are many expert advisors available for sale to traders.
Most expert advisors are tested first over a long historical data set. This can be misleading. Markets have a large number of environments and an expert advisor tested over a long time may either do well just on a small cluster of environments or the historical data used may not (in fact, probably does not) have an evenly distributed sample of all the environments. See Tools for Traders, for some of the applications of the market environment (ME) back-testing methodology, which attempts to overcome these deficiencies.
Tip: An expert advisor should not be confused with an expert system -- though the two have similarities. An expert system is considerably more complex and has additional features such as subroutine loops, so the program can, at least in theory, learn from its mistakes internally and on the fly in real time and develop a procedure for explaining its decisions.
By Michael Duane Archer