Translation (preserving HTML format, no extra line breaks, decoded entities applied): 11/9★Sometimes I borrow the power of ChatGPT, Episode 179 【Important points when choosing EA】
FX Auto Trading, Reiwa’s Double-Ie.
Since last year, I’ve been aiming to post almost every day in this series.
I think we’ve continued for almost two years now!
If you read what I’ve written so far,
I’m confident you’ll come closer to better EA operation.
And, since I’d like to take a short break,
I’d like to continue posting with the help of ChatGPT.
Occasionally, I’ll post irregularly like before.
Important points when choosing an EA
～Importance of backtests and forward tests～
This is Reiwa’s Double-Ie.
When choosing an EA, the most important thing is to judge by objective data.
In discretionary trading, results vary with the trader’s psychology and decisions, but since an EA runs by program, results appear clearly as numbers.
That’s why professional EA traders always evaluate and select EAs based on data and set their operating policies accordingly.
What is backtesting?
Backtesting is testing an EA’s performance using past market data.
By testing with long-term data such as 10 or 20 years, you can verify whether the EA can endure various market environments.
For example, if it can draw a steadily rising profit curve even through major shocks like the Lehman Crisis or the COVID crash, reliability is high.
However, note that backtests are based on past data and do not guarantee the future.
What is forward testing?
Forward testing is trying the EA in real-time live market conditions.
Running in actual trading environments reveals performance aspects such as spreads, order execution, and broker characteristics that backtests cannot show.
For beginners, it’s safest to first perform forward testing on a demo account, confirm behavior, then operate on a real account.
Confirming “does it move as the backtest indicated?” through forward testing is an important step in EA selection.
Summary: choose EAs based on data
The criteria for choosing an EA are driven by both backtest and forward test data.
Backtest: can it deliver stable results over the long term
Forward test: can it perform in actual trading conditions
An EA that clears both is an EA you can operate with confidence over the long term.
Choosing an EA should be based on measurable reliability, not on personality or vibe.
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【Flow from starting EA to intermediate level】
First, it’s important to master “installing EAs.”
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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※
At first, you won’t understand everything all at once, and it’s normal to stumble.
I also stumbled many times at the beginning, so don’t rush—you’ll be fine!
If you have any questions, there is a “Contact Us” form you can use!
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https://www.gogojungle.co.jp/inquiry
【How to choose an EA】
Now that you’re ready to operate an EA,
you might be thinking, “I don’t know which EA will win… I don’t want to lose…”
Therefore, Reiwa’s Double-Ie has
begun the following series so you can gauge roughly by backtesting.
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https://www.gogojungle.co.jp/finance/navi/series/1714
【How should EA risk management be done!?】
And no matter how excellent an EA is,
FX collapses if you neglect risk management.
So for EAs, how should risk management be done?
An article answering that is below.
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■ About calculating 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 a long time, the “EA operation mindset” is also important.
Those articles include,
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12/30★ Year-end and New Year SP!! All-about EA Course Part 3
https://www.gogojungle.co.jp/finance/navi/articles/80551
8/12 [Obon holiday special!] Now you too can master EAs! “Mindset for improving EA operation”
https://www.gogojungle.co.jp/finance/navi/articles/72829
8/17 [Obon holiday special!] Now you too can master EAs! “Notes during EA operation”
https://www.gogojungle.co.jp/finance/navi/articles/73797
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That said,
the content is quite substantial and important,
so please make sure to read it, even if you don’t understand it right away!
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【Reiwa’s Double-Ie EA Listing】
https://www.gogojungle.co.jp/users/112481/products
Specifically categorized Reiwa’s Double-Ie EAs by genre
https://www.gogojungle.co.jp/finance/navi/articles/67162
(Diversification by genre is essential when building a portfolio)
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【List of Reiwa’s Double-Ie serialized articles】
■ 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
■ How to find winning EAs from backtesting
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
■ Reiwa’s Double-Ie “Push-buying and pullback-selling logic” is now公開!!
https://www.gogojungle.co.jp/finance/navi/articles/65010
https://www.gogojungle.co.jp/finance/navi/series/610
【Reiwa’s Double-Ie’s Beliefs】
Develop EA with integrity,
seek the support of as many people as possible,
and maintain a long-term WIN-WIN relationship,
aiming to revitalize the EA market and raise literacy.
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