From time to time I’ll borrow the power of ChatGPT: Episode 178 [Complete Edition] EA types explained and approaches to portfolio management

FX Auto Trading, the EA developer Reiwa's Double-E.

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

Probably we have continued for about a year and a half now!

If you read what I have written so far,

I am confident you will come closer to better EA operations.

And, since I want to take a short break,

I will continue posting by borrowing the power of ChatGPT.

Occasionally, I will post irregularly, as in the past.

【Complete Edition】Explanation of EA Types and Portfolio Management Concepts

This time, we summarize what kinds of FX automated trading (EA) exist,

and how to combine and manage them, in a complete edition.

“I don’t know which EA to choose!”If you read this article, you will likely gain big hints.

Six Representative EA Genres

1. Anomaly EA

EA that entries/exits at fixed times and dates.

Known for sits like the “point of value trade” (GOTÔ day and 9:55 USD buying), etc.

Since entry time is known in advance, beginner-friendly

Win rate is naturally around 50%

Many people build portfolios with multiple anomaly EAs

2. Scalp EA

A type that earns small price moves steadily on short timeframes (1 minute to 15 minutes).

Buying on dips or selling on rallies, or entering on high/low breaks is the standard.

Win rate around 70%

Tends to be “loss small, profit big, steady grind”

Time under drawdown is long, but high win rate compensates

3. Trend Following EA

Aims to not go against the trend and to extend profits.

Moving average cross visuals like “Golden Cross buy” and “Dead Cross sell” are easy to imagine.

Win rate around 40%

Profit is earned by small losses and large gains

Combines well with scalping

4. Swing EA

Aims to catch reversals after a trend has stretched too far.

When a new trend begins, strives to maximize profits.

Win rate similar to trend following, around 40%

Profit range is large with small losses

5. Averaging Down EA

Adds positions as the market moves against them, lowering average cost, and exits with some profit when it recovers.

Some employ Martingale-style lot increases.

Backtests tend to look upward-sloping

But there is a risk of always holding unrealized losses

Handling is essential and not beginner-friendly

Capital efficiency (low profit per position) is poor and risk of ruin relatively high

6. Multi-Logic EA

An EA that includes multiple logics to complement risk.

This is basically a portfolio on its own.

■ Features

High number of trades

Sometimes both long and short entries occur at the same time

High stability and easy for beginners

Independent logic not belonging to any category

※ In my own development, there are EAs that do not fit into the six genres above.

Representative examples include,

Utility Player (All-Purpose Concept)Copernicus Basic USDJPY Version (Special Specifications where entries do not overlap)

Trend End Scalp (An original concept aiming at the end of a trend)

Divergence EA (Technical divergence-based concept)

These are unique logics not widely circulated in the market,

whether you can develop an EA that transcends the 6 genresis what I think marks the quality of an EA developer.

Portfolio Management Concepts

There is no inherent superiority among the EA types introduced so far.

Each has strengths and weaknesses, so it’s important to combine multiple types to offset risks.

My perspective is to mix EAs with different win rates.

By incorporating EAs with varying win rates into a portfolio,you naturally end up including various EA types.SummaryThere are six major EA genres: Anomaly, Scalp, Trend Following, Swing, Averaging Down, Multi-LogicAdditionally, there exist “Independent Logic EA” that do not belong to any of these genresEach genre has its own pros and cons, and balancing them in a portfolio is the key to stable operationEven just combining EAs with different win rates naturally achieves balance■ As a general complete edition, this article summarizes the basics and mindset of EA operation.If you are unsure about choosing an EA or building a portfolio, please use this as a reference!----------------------------------■ “How to calculate EA risk management”https://www.gogojungle.co.jp/finance/navi/articles/64703----------------------------------━━━━━━━━━━━━━━━【From Starting EA to Intermediate: Flow Summary】First, it is important to “master installing EAs.”--------------------------------------------------------------------MT4 EA (Expert Advisor) and Indicator installation procedures https://www.gogojungle.co.jp/post/1/8212--------------------------------------------------------------------※ GoGoJungle Video Version ※Even at the beginning, not everything can be understood at once, and some people may stumble.I also stumbled many times at first, so don’t rush—you’ll be okay!If you have questions, use the “Contact form” to reach out!----------------------------------■ GoGoJungle “Contact Form”https://www.gogojungle.co.jp/inquiry----------------------------------【How to Choose EA】Now that you feel you can run an EA,you might think, “I don’t know which EA will win… I don’t want to lose…”So, Reiwa no Double-i (Ryōwa no Double-i) has“Backtesting” to determine a reasonable sense of good/bad.We have serialized the following articles.--------------------------------■ How to find winning EAs from backtests https://www.gogojungle.co.jp/finance/navi/series/1714----------------------------------Forward testing is important, butbacktesting provides the validation for it.Often the backtest period is longer than the forward period, andwhether you happened to win in forward is something you can gauge somewhat by mastering backtest evaluation.【How should EA risk management be?】And no matter how excellent an EA you obtain,FX will fail if you neglect risk management.Therefore, for EAs, what is the best way to manage risk?!This is answered in the articles below.----------------------------------■ “How to calculate EA risk management”https://www.gogojungle.co.jp/finance/navi/articles/64703----------------------------------【EA Operation Mindset is also Important】And, to sustain EA operations long-term, the “EA operation mindset” is also important.For those articles,----------------------------------12/30 Year-End/New Year SP!! EA Clarity Course Part 3 https://www.gogojungle.co.jp/finance/navi/articles/805518/12 [Obon Holiday Special!]] Now you too can become an EA master! “EA Operation Mindset”https://www.gogojungle.co.jp/finance/navi/articles/728298/17 [Obon Holiday Special!] Now you too can become an EA master! “Important注意事項 during EA operation”https://www.gogojungle.co.jp/finance/navi/articles/73797----------------------------------That said,it is quite substantial and very important content,so even if you cannot understand it immediately, please be sure to review it!━━━━━━━━━━━━━━━【Ryōwa no Double-E EA Listing】https://www.gogojungle.co.jp/users/112481/productsSpecifically categorized Ryōwa no Double-E EA genres https://www.gogojungle.co.jp/finance/navi/articles/67162(Genre diversification is essential when building a portfolio)━━━━━━━━━━━━━━━【Ryōwa no Double-E Series Articles】■ EA Beginner Course https://www.gogojungle.co.jp/finance/navi/series/1700--------------------------------“About EA risk management calculation”https://www.gogojungle.co.jp/finance/navi/articles/64703Portfolio version: About EA risk management calculation https://www.gogojungle.co.jp/finance/navi/articles/65978Tips to spot fraudulent materials (in the case of EA)https://www.gogojungle.co.jp/finance/navi/articles/64738When you have questions about EA, first check here https://www.gogojungle.co.jp/finance/navi/articles/65619--------------------------------■ How to find winning EA from backtests https://www.gogojungle.co.jp/finance/navi/series/1714--------------------------------■ No-tak: GoGoJungle raises questions!https://www.gogojungle.co.jp/finance/navi/series/1701Where is GoGoJungle's inquiry form?https://www.gogojungle.co.jp/finance/navi/articles/64723--------------------------------■ Ryōwa no Double-E「Pullback Buying and Retracement Selling Logic」Revealed!!https://www.gogojungle.co.jp/finance/navi/articles/65010■ Double-E FX Miscellaneous Talks https://www.gogojungle.co.jp/finance/navi/series/610━━━━━━━━━━━━━━━【Ryōwa no Double-E’s Beliefs】Develop EA with a proper method,gain the trust of more people,keep a long-term WIN-WIN relationship,aim to revitalize the EA market and improve literacy.━━━━━━━━━━━━━━━

you naturally end up including various EA types.

Summary

There are six major EA genres: Anomaly, Scalp, Trend Following, Swing, Averaging Down, Multi-Logic

Additionally, there exist “Independent Logic EA” that do not belong to any of these genres

Each genre has its own pros and cons, and balancing them in a portfolio is the key to stable operation

Even just combining EAs with different win rates naturally achieves balance

■ As a general complete edition, this article summarizes the basics and mindset of EA operation.

If you are unsure about choosing an EA or building a portfolio, please use this as a reference!

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

━━━━━━━━━━━━━━━

【From Starting EA to Intermediate: Flow Summary】

First, it is important to “master installing EAs.”

--------------------------------------------------------------------

MT4 EA (Expert Advisor) and Indicator installation procedures

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

--------------------------------------------------------------------

※ GoGoJungle Video Version ※

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

I also stumbled many times at first, so don’t rush—you’ll be okay!

If you have questions, use the “Contact form” to reach out!

----------------------------------

■ GoGoJungle “Contact Form”

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

----------------------------------

【How to Choose EA】

Now that you feel you can run an EA,

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

So, Reiwa no Double-i (Ryōwa no Double-i) has

“Backtesting” to determine a reasonable sense of good/bad.

We have serialized the following articles.

--------------------------------

■ How to find winning EAs from backtests

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

----------------------------------

Forward testing is important, but

backtesting provides the validation for it.

Often the backtest period is longer than the forward period, and

whether you happened to win in forward is something you can gauge somewhat by mastering backtest evaluation.

【How should EA risk management be?】

And no matter how excellent an EA you obtain,

FX will fail if you neglect risk management.

Therefore, for EAs, what is the best way to manage risk?!

This is answered in the articles below.

----------------------------------

■ “How to calculate EA risk management”

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

----------------------------------

【EA Operation Mindset is also Important】

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

For those articles,

----------------------------------

12/30 Year-End/New Year SP!! EA Clarity 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注意事項 during EA operation”

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

----------------------------------

That said,

it is quite substantial and very important content,

so even if you cannot understand it immediately, please be sure to review it!

━━━━━━━━━━━━━━━

【Ryōwa no Double-E EA Listing】

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

Specifically categorized Ryōwa no Double-E EA genres

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

(Genre diversification is essential when building a portfolio)

━━━━━━━━━━━━━━━

【Ryōwa no Double-E Series Articles】

■ EA Beginner Course

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

“About EA risk management calculation”

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

Portfolio version: About EA risk management calculation

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

Tips to spot fraudulent materials (in the case of EA)

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

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

■ How to find winning EA from backtests https://www.gogojungle.co.jp/finance/navi/series/1714

■ No-tak: GoGoJungle raises questions!

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

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

■ Ryōwa no Double-E「Pullback Buying and Retracement Selling Logic」Revealed!!

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

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

【Ryōwa no Double-E’s Beliefs】

Develop EA with a proper method,

gain the trust of more people,

keep a long-term WIN-WIN relationship,

aim to revitalize the EA market and improve literacy.

━━━━━━━━━━━━━━━

【Complete Edition】Explanation of EA Types and Portfolio Management Concepts

This time, we summarize what kinds of FX automated trading (EA) exist,

and how to combine and manage them, in a complete edition.

“I don’t know which EA to choose!”If you read this article, you will likely gain big hints.

Six Representative EA Genres

1. Anomaly EA

EA that entries/exits at fixed times and dates.

Known for sits like the “point of value trade” (GOTÔ day and 9:55 USD buying), etc.

Since entry time is known in advance, beginner-friendly

Win rate is naturally around 50%

Many people build portfolios with multiple anomaly EAs

2. Scalp EA

A type that earns small price moves steadily on short timeframes (1 minute to 15 minutes).

Buying on dips or selling on rallies, or entering on high/low breaks is the standard.

Win rate around 70%

Tends to be “loss small, profit big, steady grind”

Time under drawdown is long, but high win rate compensates

3. Trend Following EA

Aims to not go against the trend and to extend profits.

Moving average cross visuals like “Golden Cross buy” and “Dead Cross sell” are easy to imagine.

Win rate around 40%

Profit is earned by small losses and large gains

Combines well with scalping

4. Swing EA

Aims to catch reversals after a trend has stretched too far.

When a new trend begins, strives to maximize profits.

Win rate similar to trend following, around 40%

Profit range is large with small losses

5. Averaging Down EA

Adds positions as the market moves against them, lowering average cost, and exits with some profit when it recovers.

Some employ Martingale-style lot increases.

Backtests tend to look upward-sloping

But there is a risk of always holding unrealized losses

Handling is essential and not beginner-friendly

Capital efficiency (low profit per position) is poor and risk of ruin relatively high

6. Multi-Logic EA

An EA that includes multiple logics to complement risk.

This is basically a portfolio on its own.

■ Features

High number of trades

Sometimes both long and short entries occur at the same time

High stability and easy for beginners

Independent logic not belonging to any category

※ In my own development, there are EAs that do not fit into the six genres above.

Representative examples include,

Utility Player (All-Purpose Concept)Copernicus Basic USDJPY Version (Special Specifications where entries do not overlap)

Trend End Scalp (An original concept aiming at the end of a trend)

Divergence EA (Technical divergence-based concept)

These are unique logics not widely circulated in the market,

whether you can develop an EA that transcends the 6 genresis what I think marks the quality of an EA developer.

Portfolio Management Concepts

There is no inherent superiority among the EA types introduced so far.

Each has strengths and weaknesses, so it’s important to combine multiple types to offset risks.

My perspective is to mix EAs with different win rates.

you naturally end up including various EA types.

Summary

There are six major EA genres: Anomaly, Scalp, Trend Following, Swing, Averaging Down, Multi-Logic

Additionally, there exist “Independent Logic EA” that do not belong to any of these genres

Each genre has its own pros and cons, and balancing them in a portfolio is the key to stable operation

Even just combining EAs with different win rates naturally achieves balance

■ As a general complete edition, this article summarizes the basics and mindset of EA operation.

If you are unsure about choosing an EA or building a portfolio, please use this as a reference!

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

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