Risk Comes First
No Expert Advisor is risk-free. Before you run one on a live account, decide the amount of capital and drawdown you are prepared to risk. These limits should be based on your circumstances, not on a target return.
Start With Position Size
Position size has a major effect on drawdown. Begin with the smallest practical lot size, especially when testing a new EA, broker, or set of parameters. Increase exposure only after you have enough data and remain comfortable with the potential loss.
Set Clear Limits
Test Before Going Live
Run the EA on a demo account or a small live account first. Compare its live behavior with the conditions you tested, including spreads, slippage, execution speed, and trading-session availability.
Review Market Conditions
High-impact news, low liquidity, and unusually wide spreads can change an EA's behavior. Know whether your strategy is designed to trade during these periods and pause it when market conditions fall outside your plan.
Use a Consistent Process
1. Document the EA settings and your maximum acceptable drawdown
2. Confirm the account balance, leverage, and position size before starting
3. Monitor margin, open exposure, and execution quality regularly
4. Stop trading and reassess if your predefined limits are reached
Final Reminder
Risk management cannot remove losses, but it can keep losses within limits you have chosen. Never use money you cannot afford to lose, and avoid changing your plan in reaction to a single trade.