Hi folks
What is the value of an expert advisor?How do we put a value on an expert advisor?What is a good expert advisor?
A good expert advisor is one with a drawdown of 50 % of the yearly pips it makes(averaged out over 3 years).It should have annual pippage of at least 700 pips and a drawdown of 350 pips.
An investor could put 10,000 and expect to make 70 % per year = 700 pips *$10
If an investment in an expert advisor gives an income of 70% ,on a 10,000 account (the minimum account size used )it would give 10 times the annual interest income of say 7% =70%.In my view the expert advisor is worth 10 times * 10,000 * 0.5 (annual drawdown) = $50,000.
A really good expert advisor making $250,000 from a $10,000 account is worth around $1.8 m
Could anybody else come up with a formula for putting a value on expert advisors
OILFXPRO
