The Smart Money Concepts (SMC) EA aims to deliver professional-grade trading strategies to individual traders, utilizing techniques commonly used by top fund managers. This article provides an unbiased overview of the EA’s core features and strategies as advertised by the developer.
Key Strategy: Volatility Breakout
At the heart of the SMC EA is a volatility breakout strategy, a favored approach among professional fund managers and institutional traders. This method seeks to capitalize on substantial price movements by following market impulses, aiming to catch significant trends. According to the developer, this established strategy is both reliable and widely used in the trading industry.
To complement this primary strategy, the EA includes a sophisticated drawdown compensating algorithm. This feature is designed to protect traders’ accounts by minimizing rapid drawdowns, enabling smaller losses on exits. Together, the volatility breakout approach and drawdown compensation algorithm offer a robust solution for traders. 
Core Features of Smart Money Concepts EA
- Following the “Smart Money”: The SMC EA is structured to replicate the strategies of professional traders, helping retail traders adopt institutional-level tactics.
- Accurate Market Entries: The EA aims for highly precise entry points, increasing the chances of profitable trades.
- High Reward-to-Risk Ratio: Focusing on trades with a favorable reward-to-risk ratio helps maximize profits while managing potential risks.
- Tight Stop Losses: To protect capital, the EA employs tight stop losses, reducing exposure to major losses.
- Independence from Slippage and Spread: Designed to perform effectively even under varying slippage and spread conditions, ensuring consistent functionality.
- Efficient Money Management: The EA uses advanced money management techniques to optimize trade performance.
- Drawdown Compensating Algorithm: This algorithm minimizes drawdowns, offering added protection to the account balance.
- Visual Risk Indication System: A visual indicator displays current risk levels, assisting traders in making informed decisions.
- Spread and Slippage Protection: Features are in place to protect trades from the adverse effects of high spread and slippage.
- Profit Protection System: This system secures profits, helping to lock in gains after successful trades.
- Dynamic Trading Logic: Adapts to changing market conditions with a flexible approach to trading logic.
- Advanced Time Management: Manages trade timing and sessions, optimizing entry points within preferred trading hours.
Recommendations for Using Smart Money Concepts EA
Minimum Account Balance: $500
Optimal Pairs: Best results on EURUSD (default settings) and GBPUSD (with .set file); adaptable to other pairs with optimization.
Recommended Timeframe: M5
Recommend running this free forex EA on a VPS (Vultr)
Low Spread ECN account is also recommended Icmarket and Exness
