Expert Advisor or EA is a program to do trading automatically based on strategy built into it. It has no brain, but it has trading strategy based on the program written by the programmer.
To write a good auto trading program, the programmer must be a trader. Success of an EA depends on the strategy of the programmer. Different strategy has different requirement and gives different result. Understanding of the strategy and the requirement is important in choosing the EA that is suitable to you.
Basically, higher return rate will require higher risk. Since price pattern is not 100% predictable, there is no strategy can guarantee success, most depends on probability. There is 80-90% probability that pattern is predictable. The uncertainty level even if smaller than the probability could still pose threat of total losses. This is where money management comes in.
Money management refer to percentage of margin used for trading. To me what matter most is how much are you willing to lose?
Stop loss is set for acceptable loss. Some people use 30pips, some 40pips and some never use it yet still making very good profit. Why 30pips? Why no 20pips or why not 40pips? The answer is you should decide what is suitable for you, depending on your strategy. No one can say their stop loss is better than others, because everyone is using slightly or totally different trading strategy.
Another thing to consider is draw down level. This will also depend on your strategy. Some prefer below 5%, some accept 25%, so it also depends on your strategy. No one can say their strategy is better than others based on draw down level.
EA is an assistant, it helps you to simplify calculations, it stick to the chart without getting tired to ensure you do not miss a good post. There are times a trader should decide on an opened position.
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