The Reason Why I Recommend EA Management

If you keep FX trading for a long time, you will inevitably come across the topic of “discretionary trading vs EA (automatic trading).”

And since I think many people trade only with discretion and have never used an EA, I believe it’s worth trying EA at least once to grow your trading skills without bias.

To sum up the reasons in three points──

“① It has a higher expected value than index investing,” “② It also teaches discretionary trading,” “③ It reliably increases the precious resource of ‘time’”──these are the three key points.

First, the expected return as an investment target is different.

Index investing (for example, the S&P 500) is expected to yield about 3–8% per year in the long term. Of course, its stability and lower risk are attractive, but the returns are limited accordingly.

On the other hand, with a high-quality EA, aiming for 20–50% per year is quite feasible. Of course, results vary depending on the type of EA and market conditions, but the structure of “eliminating discretionary emotions and mechanically repeating trades based on statistical edge” creates a certain level of reproducibility and expectation.

EA is not just an “automatic trading tool”; it can also be described as a “statistical model” that extracts strategies that can win probabilistically from historical data.

EA operation directly contributes to improving discretionary trading skills.

The reason is simple: you are actually putting money at risk and facing the market. The tension and sense of responsibility that can’t be gained from a demo account or chart study are acquired through EA operation.

Also, when you operate an EA, you naturally become curious about questions like “What is the logic behind this win?” and “In what market conditions is it weak?” which sharpens your chart analysis perspective.

Even if you eventually trade discretionary, those with EA experience tend to understand market quirks more easily and reduce unnecessary trades.

You’ll also feel that “there is no holy grail,” which helps prevent unrealistically high expectations of the market.

And most importantly, you gain freedom of time.

With discretionary trading, you need to stay glued to the charts or you’ll miss opportunities. But there’s no guarantee that such time will translate into profit. If you lose, you’ve lost money and time.

With EA, once you set the strategy in advance, trades run automatically. Even while you’re at work or enjoying private time, the EA will continue trading calmly.

It feels like “your proxy is working for you.”

As the investment adage says, “don’t put all eggs in one basket,” balance in asset management matters. Build a stable asset with index investing while actively targeting returns with FX EA automation. Then use the freed time to enrich your main work and life itself. I believe this combination is the most efficient way to live.

Ultimately, the biggest reason I recommend EA operation is to avoid wasting time in life.

Of course, increasing money is important, but “how you spend your time” is even more crucial.

EA is the product of someone else spending substantial time on statistical analysis and building a logic. It’s purchasing that effort. This allows you to start with a reproducible approach to investing in the shortest path. It’s a much more cost-effective and time-efficient choice than learning everything from scratch.

FX is said to have a 90% loss rate, but many of those losses come from the human psychological weakness of not being able to cut losses. As prospect theory notes, people tend to avoid losses and lose rational judgment. EA completely eliminates that emotion and executes stop-loss and take-profit according to the rules.

Therefore, EA operation can be considered a form of investment that is not swayed by emotions and is governed by logic.

In the book Rich Dad Poor Dad, the path is to become a business owner and then an investor, but

if you can make EA work to put money in your pocket, you have the possibility to advance in life without starting a business.

That’s essentially what I want to convey today.

Until next time!