Тhis was something else, it would be easy to choose the best, but with forex expert advisors it is not so easy. So how to determine which is the best forex EA?
Backtesting can give us a lot of information about the past performance of the expert advisor. It can give us what is the maximum drawdown, what is the expectancy of the trades, etc. If we compare two expert advisors we can easily rank them according to the most important parameters for us. But this doesn't mean that the best expert advisor in history will be the best expert advisor in the future, or even now. Also, there is no guarantee that it will work live the way it is in the backtest.
Live trading results
Live trading results are much more important than the backtest. They can show us that the EA is working the way as it was working in the backtest. We can feel more confident in it and we can again choose the important parameters for us and rank it. Unfortunately, just like in the backtest this doesn't affect the future. If we say now, that the Cable Trader is our best forex EA we will be right, but if it stops working we will be wrong.
Understanding how it works
Understanding how it works sometimes is impossible, but when it is possible it can give us all the information we need. We will know why it is working, and what must change in the market for it to stop working. This puts some light on the future. And the future is what matters the most.
In conclusion, we can say that for us ranking the expert advisors without understanding them, and without using that understanding how this idea can perform in the future is a bad idea. Only when we understand all about the EAs that we want to rank, we can know what to expect in the future, and we can use that expectation to rank them.