9/27★Sometimes we borrow the power of ChatGPT. Its 167【Important points when choosing EA: it is about initial price movement】 - EA Beginner Course - Navi+ - GogoJungle | Auto Trading - Market Analysis

FX Auto Trading, the Reiwa Duble-I.

This series has been written with the goal of posting every day since last year.

I think I’ve continued for about a year and a half now!

If you read what I’ve written so far,

you’re likely to approach better EA operation, I’m confident.

And since I’d like to take a short break,

I’ll continue posting by leveraging the power of ChatGPT.

From time to time, I will post as in the past.

Important point when choosing an EA: It should follow the Open Price (Open Price Only) principle

When you look at backtests, the one thing you must confirm is whether it uses “Open Price Only”.

Because an EA that doesn’t use open-price action has uncertain reproducibility with forward testing.

Open price action and tick generation mechanism

Backtests use tick data that is basically built from four price points per minute (open, high, low, close).

The issue is which comes first during the formation of a candlestick—the high or the low?

In actual markets, there is only one order—either the high comes first or the low comes first—but

in MT4 backtests, this is supplemented with “pseudo-generated ticks.”

Therefore, an EA that does not use open price action may enter or exit in a way that is convenient for backtests,

and may not fully reflect actual market price movements.

Why is open price action important?

EA with Open Price Action

→ Higher reproducibility between backtests and real trades.

EA without Open Price Action

→ Because it relies on pseudo tick generation, there is a greater risk of discrepancy between backtest and forward test.

This difference is very large and determines the reliability of backtests.

In other words, an EA without open price action has a high risk of “past performance was winning but live operation will not.”

Modeling quality and open price action

In MT4 backtests, the modeling quality cannot reach 100% and tops out at around 90% for this reason.

Because of uncertain elements introduced by pseudo tick generation, a perfectly matched simulation is impossible.

Therefore, when choosing an EA:

✅Is it built on open price action?

✅And is the long-term backtest performance good?

By checking these two points, you can select an EA with high reproducibility in forward trading.

Summary

Checkpoints when choosing an EA are as follows:

Long-term upward trend including the Lehman Crisis

Recovery factor of more than 10 years and more than 10x

Appropriate spread settings

Sufficient expected profit

Open price action

Whether these five criteria are met greatly changes the reliability of the EA.

In particular, “open price action” is the final fortress guaranteeing backtest reliability, so be sure to check it.

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【Flow from starting EA to intermediate level】

First, it is important to master how to install the EA.

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MT4 EA (Expert Advisor) and Indicator installation procedure

https://www.gogojungle.co.jp/post/1/8212

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※GoGoJungle video version※

Even at the beginning, not everything can be understood at once, and some people will stumble.

I myself struggled many times at first, so don’t rush—it’ll be okay!

If you have questions, there is a contact form, so please use it!

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https://www.gogojungle.co.jp/inquiry

【How to choose an EA】

Now that you think you can operate an EA,

you might think, “I don’t know which EA will win… I don’t want to lose…”

So Reiwa Duble-Ie has published the following articles to give you some sense from backtests.

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https://www.gogojungle.co.jp/finance/navi/series/1714

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【How should FX risk management be handled?!】

And no matter how advanced an EA is,

https://www.gogojungle.co.jp/finance/navi/articles/64703

【EA operation mindset is also important】

And,to sustain EA operation long-term, the “EA operation mindset” is also important.

For those articles,

12/30★ Year-end and New Year SP!! EA Full Guide Part 3

https://www.gogojungle.co.jp/finance/navi/articles/80551

8/12 [Summer Holiday Special]! Now you’re an EA Master! “Mindset for improving EA operation”

https://www.gogojungle.co.jp/finance/navi/articles/72829

8/17 [Summer Holiday Special]! Now you’re an EA Master! “Notes during EA operation”

https://www.gogojungle.co.jp/finance/navi/articles/73797

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So,

the content is substantial and quite important,

even if you can’t understand it right away, please make sure to skim through it!

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【Reiwa Duble-Ii EA Listing】

https://www.gogojungle.co.jp/users/112481/products

Specifically categorized Reiwa Duble-Ii EA titles

https://www.gogojungle.co.jp/finance/navi/articles/67162

(Portfolio diversification requires category diversification)

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【List of Reiwa Duble-Ii serialized articles】

https://www.gogojungle.co.jp/finance/navi/series/1700

https://www.gogojungle.co.jp/finance/navi/articles/64703

https://www.gogojungle.co.jp/finance/navi/articles/65978

https://www.gogojungle.co.jp/finance/navi/articles/64738

https://www.gogojungle.co.jp/finance/navi/articles/65619

https://www.gogojungle.co.jp/finance/navi/series/1714

https://www.gogojungle.co.jp/finance/navi/series/1701

https://www.gogojungle.co.jp/finance/navi/articles/64723

https://www.gogojungle.co.jp/finance/navi/articles/65010

https://www.gogojungle.co.jp/finance/navi/series/610

【Reiwa Duble-Ie’s Beliefs】