I believe in a disciplined approach when evaluating Expert Advisors. Every EA I use goes through a complete life cycle before I allocate real capital to it. The process is simple but rigorous:
My evaluation framework
1. Backtest the EA (EA with major AI component may skip this process) - I perform structured, multi-scenario backtests to understand behavior across different market regimes.
2. Invest in the EA - If the logic is sound, I commit both small capital and time to understand how it behaves live.
3. Forward Test the EA - I run the EA in real market conditions to validate its consistency and robustness.
4. Review Performance - Weekly and monthly reviews help identify strengths, weaknesses, and areas for optimization. Some EA will be considered failed investment even before placing into portfolio.
5. Portfolio Selection - Only EAs that demonstrate stability, edge, and controlled risk are placed into my live trading portfolio with larger capital.
6. Portfolio Review - Constant review and EA adjustment for optimized performance. EA that does not make the cut over time, will be reviewed and replaced.
Repeat cycle
My Portfolio Performance :
https://www.fxblue.com/users/p1
Powerful video on portfolio and diversification that I hold to :
https://www.youtube.com/watch?v=Nu4lHaSh7D4
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