10/1★Sometimes I borrow the power of ChatGPT 171【A professional explains the calculation method for risk management essential to EA operation】
FX Auto Trading, EA developers Reiwa’s Double-I.
This series has been written with the goal of posting every day since last year.
It has probably continued for about a year and a half now!
If you read what has been written so far,
I’m confident you’ll come closer to better EA operations.
And since I’d like to take a short break,
I’ll continue posting with the help of ChatGPT.
From time to time, I will post as before, irregularly.
A Must for EA Operations! Professional Explanation of Risk Management Calculations
FX Auto Trading・EA Developer’s Reiwa’s Double-I.
This time, one of the essential points in EA operation that cannot be skipped,
**“How to Calculate Risk Management”**I will explain.
There are two major important elements in EA operation.
The first is “how to choose the EA,” and the second is “risk management.”
In the previous article, I explained in detail how to choose an EA, so if you haven’t read it yet, please check that as well.
The essence of “risk management” learned from past mistakes
Actually, I have also experienced many failures in the past.
“I want to earn big, right now!” Driven by such desires, I risked an excessive lot size relative to my funds, and almost went bankrupt as a result.
Probably some of you reading this have had similar experiences, right?
However, from those painful experiences I learned something.
That is, **“risk management is the lifeline of EA operation.”**
Learn risk management in the shortest possible distance
In this article, I will convey, as clearly and quickly as possible, the risk management calculation method I arrived at through trial and error.
I later learned that this calculation method was also described in a book by the world-renowned trader Larry Williams.
In other words, what I thought I developed from my own experience was already a globally recognized theory.
When I learned this, I honestly felt certain that I had been studying in the right direction.
Summary
Only when you choose the right EA and manage risk properly can you achieve an operation that “protects assets while growing them.”
Next time, I will simulate this calculation method in more concrete numerical terms.
Try applying it to your own operations and check it out!
Well then!
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【Flow from starting EA to intermediate level】
First of all, mastering “EA installation” is essential.
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MT4 EA (Expert Advisor) and Indicator Installation Procedures
https://www.gogojungle.co.jp/post/1/8212
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※ Gogosome Video Version ※
At first, you may not understand everything all at once, and some may stumble.
I also stumbled many times at the beginning, so don’t rush—you’ll be fine!
If you have questions, there is a contact form, so please use it!
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■ Gogojungle “Contact Form”
https://www.gogojungle.co.jp/inquiry
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【How to Choose EA】
Now that you’re ready to operate the EA,
you might be thinking, “I don’t know which EA to win with… I don’t want to lose….”
Therefore, Reiwa’s Double-I will provide that,
“to some extent, you can understand it through backtesting,”
and I have serialized the following articles.
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■ How to Find Winning EAs from Backtests
https://www.gogojungle.co.jp/finance/navi/series/1714
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but the backtest backs it up.
Backtest periods are usually longer than forward periods,
and whether you happen to win forward is something you can estimate to some extent by mastering backtest evaluation methods.
【How should EA risk management be done!?】
And no matter how excellent an EA you obtain,
if you neglect risk management, FX will collapse.
Therefore, in the case of EA,how to do risk management?
The following articles answer this.
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■ About “The Calculation Method of EA Risk Management”
https://www.gogojungle.co.jp/finance/navi/articles/64703
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【EA Operation Mindset is Also Important】
And, to sustain EA operation for the long term, the “EA operation mindset” is also important.
For those articles,
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12/30★ Year-end and New Year SP!! A complete EA course, Part 3
https://www.gogojungle.co.jp/finance/navi/articles/80551
8/12【Special Summer Holiday企画！】Now you too can be an EA Master! “EA Operation Improvement Mindset”
https://www.gogojungle.co.jp/finance/navi/articles/72829
8/17【Special Summer Holiday企画！】Now you too can be an EA Master! “Notes During EA Operation”
https://www.gogojungle.co.jp/finance/navi/articles/73797
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With that,
the content is quite substantial and important,
even if you don’t understand it right away, please make sure to review!
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【Reiwa’s Double-I EAs Listing】
https://www.gogojungle.co.jp/users/112481/products
Specifically categorized Reiwa’s Double-I EAs by genre
https://www.gogojungle.co.jp/finance/navi/articles/67162
(Portfolio diversification by genre is essential)
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【Reiwa’s Double-I Series Articles】
■EA Beginner’s Course
https://www.gogojungle.co.jp/finance/navi/series/1700
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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
■ How to Find Winning EAs from Backtests
https://www.gogojungle.co.jp/finance/navi/series/1714
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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-I Beliefs】
Develop EA with a proper approach,
gain the trust of more people,
and maintain a long-lasting WIN-WIN relationship,
aiming to vitalize the EA market and improve literacy.
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