9/28★Sometimes I borrow the power of ChatGPT for this 168th【Important points when choosing EA: Real Forward】
FX automated trading, the EA developer Reiwa's Double-E.
This series has been written with the aim of posting every day since last year.
I think I have continued for about a year and a half now!
If you read what I have written so far,
I am confident you will move closer to better EA trading.
And, there are times I want to take a short break,
so I will continue posting with the help of ChatGPT.
Occasionally I will post irregularly, as before.
Important points when choosing an EA: Real Forward
Differences between backtesting and real forward
Backtesting is only verification on historical data.
On the other hand, real forward is the performance record of an EA that has actually run.
In other words, real forward allows you to see how well the scenario painted by backtesting is reproduced in real market conditions.
What to verify in real forward
Whether it proceeds as per backtesting.
Backtesting represents the theoretical performance of the EA; real forward provides the confirmation.
A large discrepancy between the two is proof of unreliability.
Don’t judge in a short period
There is no Holy Grail for EAs; there will always be downturns.
Judging with only weeks to months of data may cause you to misunderstand an otherwise excellent EA.
Look at data for more than a year
If there is more than a year of real forward data, and
it tracks similar to backtesting results, the EA's reliability greatly increases.
Recovery factor perspective
Recovery factor remains an important indicator in real forward as well.
By confirming that the value of “Net Profit ÷ Maximum Drawdown” remains at a steady level over the long term,
you can determine whether the EA is operating stably in line with backtests.
Summary: Reliability of EA is formed by backtesting + real forward
When choosing an EA,
check if it holds up in long-term backtests
verify reproducibility with more than a year of real forward data
This two-step approach is extremely important.
Backtesting is the “map,” real forward is the “actual journey.”
Even if the map is correct, if you cannot follow the same path on the journey, it is meaningless.
✍️ Reiwa's Double-E
Real forward also needs backing from backtesting!
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【Flow from 'want to start EA' to intermediate level】
First, it is important to “master installing the EA.”
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MT4 EA (Expert Advisor) and indicator installation procedures
https://www.gogojungle.co.jp/post/1/8212
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※ GoGoJungle video version ※
Even at first, you may not understand everything at once, and some may stumble.
I also stumbled many times at the beginning, so take your time and stay calm!
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 may wonder, “I don’t know which EA will win… I don’t want to lose…”
So Reiwa's Double-E has published the following articles to help with backtesting to some extent determine quality.
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https://www.gogojungle.co.jp/finance/navi/series/1714
【How to manage risk for an EA?!】
And no matter how excellent an EA you obtain,
if you neglect risk management, FX will collapse.
So for EAs, how to manage risk?
The following article answers that.
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https://www.gogojungle.co.jp/finance/navi/articles/64703
【EA operation mindset is also important】
And, to sustain EA operation for the long term, the “EA operation mindset” is important as well.
Regarding those articles,
12/30 Year-End Special!! EA Full Understanding Course Part 3
https://www.gogojungle.co.jp/finance/navi/articles/80551
8/12 [Obon Holiday Special]! Now you too can become an EA Master! “EA Operation Mindset”
https://www.gogojungle.co.jp/finance/navi/articles/72829
8/17 [Obon Holiday Special]! Now you too can become an EA Master! “Important Considerations During EA Operation”
https://www.gogojungle.co.jp/finance/navi/articles/73797
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That said,
this content is quite substantial and very important,
even if you cannot understand it right away, please be sure to read it!
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https://www.gogojungle.co.jp/users/112481/products
https://www.gogojungle.co.jp/finance/navi/articles/67162
(Diversification by genre is essential when building a portfolio)
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■ EA Beginner's Course
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's Double-E's Philosophy】
Develop EAs using proper methods,
to win the love of more people,
and to maintain a long-lasting WIN-WIN relationship,
with the aim of reviving the EA market and improving literacy.
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