The true identity of the Explosive Profit EA and how to interact with it properly

Reality of Explosive-Profit EAs and How to Handle Them

“Explosive-profit EAs” often seen on SNS and YouTube.

When you see track records showing rapid fund growth in a short period,
it's natural to feel drawn to them.

However, having experienced both sides—creating and using EAs—what I feel is
there are always prerequisites for explosive-profit EAs.

Why do explosive-profit EAs look so good?

Many explosive-profit EAs aredesigned to take wide stop-losses.
in other words, they accept large drawdowns.

Therefore, even while carrying unrealized losses,
if the market moves back in the expected direction, they become profitable.

As a result, the performance appears to rise steadily on the surface.

For example, when GOLD is clearly in an upward trend,
it becomes easier to profit by piling on long positions.Doing so
creates a market where profits come more readily.

In such environments,even if the EA’s logic is somewhat rough,
the state of “looks like it’s winning a lot” persists.

The problem is when the premise collapses.

EAs are built on premises like“the price movement will stay within this range”
“there won’t be a big collapse”and so on.

But the market often betrays those premises simply.When a sharp drop or sudden move occurs,

EAs with far stop-losses tend to suffer fatal damage in a single move.

In other words, explosive-profit EAs arestrong when the market is in sync, but weak the moment they’re out of sync
..

If you use explosive-profit EAs, risk management is the top priority

What matters when using explosive-profit EAs is
not the superiority of the logic
but how you allocate your fundsand use them.

For example, if you have 1,000,000 yen in funds,
you don’t need to put all of it into the EA from the start.

First, operate with only 250,000 yen, and
once you’ve recovered that 250,000 yen, set a boundary.

That gives you psychological and financial room.

Even if the operation doesn’t go well,
you can reattempt later with a small amount from the remaining funds.

The premise is to limit risk while using the system.

EAs are not “set and forget” but “managed”

Explosive-profit EAs are particularly ill-suited for complete set-and-forget use.For example, looking at the latest GOLD market,

a one-sided drop of over 300 PIPS doesn’t happen frequently.

Adjusting stop-loss width according to the market environment,and stopping the EA around major indicators is important.

Such human judgments and management are also part of operation.

Stable earnings with explosive-profit EAs are hard

As an EA developer and a trader, I think
it isn’t realistic to operate stably in the long term with explosive-profit EAs alone.

There are brief periods of rapid growth,
but they fail to endure market changes,
and performance eventually deteriorates somewhere.

Explosive-profit EAs are,“use them decisively when they’re profitable”“use them decisively when they’re profitable”

and I believe this distance is about right.

The direction I aim for in EAs

What I envision as ideal isnot a single burst, but
an EA that grows by timeand benefits from time.

Even if it could achieve 100% annual return steadily

10,000 yen becomes 20,000 yen after a year,and about 100,000 yen after three years.

There’s no flash, but compounding works quietly and surely.

That’s why what I pursue is not
an explosive-profit EA butan EA that keeps growing

Summary

・Explosive-profit EAs are strong when the market suits them
・But they’re weak to sudden shifts
・Small-start and funded-dividing is essential
・Management is also part of operation
・Stable EAs benefit from time on your side

Explosive-profit EAs are not gambling.
However, using them without understanding is dangerous.

If you understand their nature and manage them,
they can form a viable strategy as an EA.