So you've done all your homework. You've checked countless forex forums for reviews, asked questions in various blogs, checked back-test results on multiple sites, and read every word on the official website to the point that you recite the whole thing with your eyes closed. After 4 weeks running in a live account, your EA is still doing a great job - at reducing your equity! Why does this happen?
You're working with a scam brokerage
Not all forex brokers allow EA to run on their MT4 platform; but even if they allow it, it doesn't mean they will let it run freely without disturbance. Basically, all scamming methods commonly used for manual traders can be applied to EA as well. That includes excessive slippage, stop hunting, disconnecting the EA from their server, excessive requotes, etc.
When you have an MT4-based EA, make sure you choose an honest broker with instant execution; that will make it easier for your EA to operate at 100%.
You run it under default settings
Most EAs come with default settings from the creator. While this might be good, know that most traders who gain success with their EA never let it runs in default setting. There should be different setting for various variables: risk management, money management, currency pairs, etc. Run your own backtest in MT4 and see how effective these settings are.
When you're done with the backtests, open demo accounts and run it in multiple accounts under different settings. This will allow you to measure its performance on the current market condition. For better result, run it simultaneously on a few selected forex brokers.
This "live-testing" is kind of difficult since most EAs are working their best on 24/5 VPS with reliable connection. When you have it run on your desktop or laptop, it might encounter internet connection problem or got turned off at night, making it impossible to make trades. There's no easy solution to this; you could either rent a VPS or run it on your own PC. From my experience, a desktop PC could run for weeks with no problem as long as it's located in a room with good temperature.
You're not following the EA updates
Most EAs, especially the famous one, always have specific blog or forum threads dedicated for its users. Make sure to check them often for tested new methods or settings from other users. Of course, make sure you check out the official support site regularly and subscribe to the creator's newsletter (if any) as well to receive the latest updates on the EA.
Lastly, you might forget your money management and trade with risk you should not take. No trader or EA could win 100% of the time (despite what the creator said on the official page) and when the loss trades come, you must be prepared so you don't lose all your money in a single trade.
The bottom line is: there is no set-and-forget EA. If you want a worked EA, you must put some effort to make sure it actually worked and actually generating profits.
Don't let your broker tackle your EA, here's a recommended broker for your EA with instant execution and no requotes policy: Trading Point review. Also, check out the top EA for EURUSD at Forex Growth Bot review.
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