ELM EA Review - What is a Forex Expert Advisor ?

ELM EA Review - What is a Forex Expert Advisor ?

Any beginning trader asks himself questions: How long will it take me to start earning consistently? What news to watch? How to assess the current market trend correctly? In practice it may take more than one year and lose more than one deposit. Moreover, most people never make it to the end, ending their way halfway. That's why there are trading robots that simplify this process for most of those who want to earn on price fluctuations. Below I will tell you more about trading robots and introduce you to an innovative algorithm from the developers of ELM EA.

The concept and functionality of any trading robot

A trading robot is an algorithm of actions for market analysis and management of trading orders, placing market (pending) deals, closing them, etc. For example, I have a trading tactic: I open a deal in Buy when the price breaks the previous day's maximum, put a Stop loss at the minimum of the previous day, Take Profit with the ratio of 1 to 3. All this can be done manually, but then you have to periodically distract yourself from other things, so as not to miss the moment of entering. The solution would be to connect a trading robot that would do it for me automatically (around the clock). 

Robotic trading has been used for a long time by financial market participants: private traders (investors), professional players (banks, hedge funds, and others). Here it is important to understand that just having a trading robot will not give you a stable profitable result. Everything depends not only on the elaborate TS, but also on a correctly written algorithm, uninterrupted Internet access and other factors. That's why this trading method has two camps: supporters and opponents who prefer manual trading. 

In financial markets, especially Forex, there are a lot of robots, and I cannot say for sure if they are good or bad. Everything depends on how well you use them and your understanding of how the market works. 

The main points that must not be forgotten

The market does not stand still, it is constantly changing - the liquidity rises / falls, which leads to a change in the nature of the breakdown / rebound from the levels, the correlation of assets, the reaction to the macro-and micro-statistics. Therefore:

one should not trade haphazardly;

-It is necessary to be able to trace any microchanges and to correct them in your  

 trading system by "tightening the screws" of the trading robot;

Trading robots are not just scalping, they can be used for medium-term, long-term trading;

-Use a remote server for the robot's uninterrupted work (thanks rent is not so high).

Remember, the robot makes the trader's life easier, but you will still need to continue to analyze the market, to detect micro changes, correcting your TS. You cannot just plug in a robot and forget about it.

Pros and cons of Forex Expert Advisor

Among the main ones I would single out:

-Unwavering adherence to the system, the exclusion of the emotional factor;

-Quick analysis of market data;

-simultaneous trading of several instruments;

integration of related trading systems.

Undoubtedly, there are also disadvantages, but they are more related to a lack of understanding of its working mechanism and programmed trading tactics. A trading robot is just an algorithm that requires attention to itself and to the market as a whole.

Scalping Trading Robots

The main type of exchange trading robots are scalpers. Their peculiarity is the instant profit. Deals are made during the trading day, and their number can be in the hundreds or thousands. The duration of a deal ranges from a fraction of a second to several minutes. The task of such an algorithm is to catch any micro-movement of price, to open a deal and close at the slightest change. They are mainly used by market makers (banks), earning the spread (the difference between the buy and sell price). For private traders it is recommended to have fast, uninterrupted Internet, as well as to exclude factor of sudden cut of light. This is where renting a dedicated server - VPS - can help.

VPS: the concept, features

VPS is a virtual private server, which can be rented from a hosting provider. Each server has its own set of technical characteristics: processor power, amount of RAM and other. The features include:

limited resources is determined by the selected tariff;
affordable price;
high security level;
high speed of data transfer.

Using a virtual server allows you to protect yourself from unforeseen power outages, as well as save the cost of paying for electricity (the trading robot requires around-the-clock work). From my experience I can say that it is an indispensable tool for a trader who prefers the algorithmic method of trading.

The ELM EA Algorithm 

As I said above, there is a large variety of stock trading robots on the market, but not all of them show effective results. The algorithm by the developers of ELM EA gave a slightly different insight into the understanding of market analysis. It's quite a complex and innovative approach to price movement - the robot can analyze more than 50 ticks per second, generating extremely high mathematical expectation. However, even with such a huge base and capabilities, you should understand that it has its shortcomings, which the developers are working on.

I think that many experienced traders would say that there is nothing new here - just another slightly modified algorithm, of which you can find a lot on the Internet. I can tell you that this is far from being true, and below I will try to tell you more about this amazing trading robot. You can read more about it, watch video review with accurate statistics and data on its use, and download a free copy of ELM EA at the official website elm-ea.com.

Review Functionality of ELM EA 

ELM EA is a fully automated trading robot, written for various platforms. The algorithm does not contain high-risk strategies such as martingale, exclusion of s/l (stop-loss) and other things. Only 1 order is opened, the lot size of the subsequent order corresponds to the risk management settings - always the same regardless of the result of the previous one. To other features I would add:

both virtual stop-loss, take-profit, and real (visible to the broker) are built in;
it is possible to work with capital starting from $10, which is convenient for beginner traders;
there is no need in big margin, which allows to work with accounts with small leverage;
testing of the system can only be done in real time. I have not found the possibility to test on history. I think this is done in order to show a more realistic performance. It takes more time, but increases confidence in the final result;
special attention has been paid to direct testing - we do not have to worry about the subsequent optimization of the algorithm;

extensive support of currency pairs - 26, which expands the possibilities for income, the use of arbitrage. However, the number depends on the version: the standard (Optimum) includes 6 major currency pairs, and the advanced (Pro) - all 26.

ELM EA Profit on Real Accounts

Based on my results, the standard settings of the robot allow earning about 20-25% every month with 1:500 leverage. You can set more aggressive rates, but then the risks will proportionally increase - take it into account when you want to earn a lot and fast.

Security of ELM EA customers deposit on trading accounts

When analyzing the trading advisor ELM I found a useful function that allows you to suspend trading if there is a very slow performance (worse than set in the settings) or exceeded the slippage. It works in automatic mode. 

I was most surprised by the automatic blocking of trading, if the algorithm receives a queue of losses. According to my tests and feedback from ELM users, there was not a single case of losing a deposit! It is possible to limit the level of maximum loss that a trader is ready to incur at any time. The Expert Advisor is good during a period of increased liquidity (during the news releases) - it reliably protects against contingencies and possible manipulation by a broker.

You can work simultaneously with 26 currency pairs, but I recommend excluding instruments where the spread is higher than 2.5 pips. This way you can increase the overall profit of the trading system. To work with all pairs you need at least 1 GB of RAM on the VPS-server. List of currency pairs:

Major pairs (major):

EUR/USD - euro/US dollar;

GBP/USD - British pound / US dollar;

USD/JPY - US dollar/Japanese yen;

USD/CAD - US dollar/Canadian dollar;

AUD/USD - Australian dollar/US dollar;

NZD/USD - New Zealand dollar/US dollar.


AUD/JPY (Australian dollar/Japanese yen);

CAD/JPY (Canadian dollar/Japanese yen);

EUR/AUD (euro/Australian dollar);

EUR/CAD (euro/Canadian dollar);

EUR/GBP (euro/ British pound);

EUR/JPY (Euro/Japanese Yen);

GBP/AUD (British pound/Australian dollar);

GBP/CHF (British pound/Swiss franc);

GBP/JPY (British pound/Japanese yen);

NZD/JPY (New Zealand dollar/Japanese yen).

Exotics are not included here due to low liquidity and high, floating spreads.

Brokers, which I recommend to use ELM EA on Real Accounts

Below is a list of brokers, which in my opinion are better suited to connect the EA ELM EA. This is just my recommendation and I do not want to limit you in my choice of company or lead you to cooperate with a certain broker. Try different ones, test and find the best conditions for earning with the ELM EA algorithm.

Based on my tests, the optimal performance of the Expert Advisor was observed for:

Tickmill (Pro or VIp account)
NDDFX (Dma account)
FBS (ecn account)
Hanko trade
Do not fit:
IcMarkets(Only if with MT5)

ELM_EA license

Purchase a license in the forum, which can be accessed through a personal account. In the forum you can communicate with existing clients, discuss typical questions or help each other to achieve results. The software itself is not tied to the account number/broker, account/owner. There is only a restriction on the simultaneous operation of several trading accounts. The number of the latter depends on the purchased package - it can be 3 or 10 trading accounts. If you want to add a new account if you have reached the limit, just deactivate the unnecessary one.

Conclusion about ELM EA

In conclusion, I would like to say that the ELM EA algorithm is one of the most powerful at the moment. Balanced strategy, strict risk management and trading system rules make this robot the most effective for working on the financial market. And formed a friendly community of traders trading with this robot helps to achieve the best results.

Among the disadvantages I would single out the cost of the product which is quite high for a normal trader but the potential profit of ELM EA is worth all the expenses incurred. The ELM EA is a complete product ready to work on real accounts. And to confirm the transparency and honesty, you can see the real investment accounts of the developers themselves.