#28 Nine-tenths of your losing trades are due to the broker's cheating. How can you prevent that?

This article is extremely important.

Whether you are a trader or an EA developer, please read it.

The other day I developed an EA and submitted it to Gogojan, and the test results were so exceptionally good that I deliberately lowered its performance (detuned it).

“You lowered the performance? Isn’t that an excuse?”

For those who doubt, I’ll show you the evidence.

This is the backtest result of the prototype I initially created without a limiter“without a limiter”back then.

Please take a look.

Profit Factor (PF) is 9.46.

This is a number that can be regarded as a “holy grail.”

※ In MT4 FX, PF (Profit Factor) is an indicator of “profit efficiency,” calculated by dividing total profit by total loss. A PF of 1.0 means break-even; the higher the value, the more excellent the trading method or automated trading (EA), with 1.5–2.0 or higher as a guideline.

(From Google)

However, at the same time,“one-way ticket to account freeze”as well.

Because a broker would not leave a client who consistently wins in such an abnormal way unchecked.

That’s why I reluctantly imposed limits on the logic, tightened the filters, and intentionally mixed in “human-like losses” and “hesitation.”

As a result, the performance of the released version became like this.

Profit Factor (PF) is 3.53

This is still a sufficiently excellent number, but compared to the earlier “monster,” it settles into a more realistic range.

The answer to this “why” is the same even in manual trading.

- Why does your take-profit order slip?

- Why does your take-profit order get delayed and result in a loss?

- Why does the rate move momentarily and touch your stop-loss price (stop hunting)?

The answer is simple.

Because brokers let con artists called “dealers” cheat..

I lowered the EA’s performance to protect itself fromfraud or countermeasures by FX brokers.

In the past, when I made profits too quickly with trades like BTC/JPY in a very short period (per-minute FX, etc.), I experienced explicit exclusion actions such as account freezing or order rejection from the broker side.

Especially customers who steadily extract profits with mechanical algorithms are seen as “foreign objects” that should be eliminated.

If an EA can win repeatedly with perfect timing, it will quickly be detected by the broker’s system and countermeasures will be taken.

Spread can be widened, slippage can be intentionally induced, and eventually you won’t be able to win.

Now, let me tell you about my actual experience“a true story”.

In the past, I tripled my funds in two weeks trading BTCJPY (Bitcoin/Yen).

Then the broker took unbelievable measures.

They did this by“forcing a liquidation the moment a position is opened”.

The position would be liquidated immediately upon entry.

FX has a spread (difference between bid and ask), so if liquidation happens instantly, you inevitably incur a loss accordingly.

In other words,“the moment you step onto the battle ground, all is lost”—an ultimate cheat.

When you are hit this hard, no logic can win.

Funds are physically melted away.

That’s why I gave the EA“human-like variability”to save its performance.

Make the broker misread it as simply a lucky individual trader.

This is the essential condition to continue using the EA in today’s surveillance-heavy FX market.

This also applies to manual trading.

There are countless EAs out there, but my EA’s design philosophy is completely different from other developers’ EAs.

While most EAs trade based on machine-driven technical analysis, mine is designed to“reproduce the judgments and actions a human would perform when viewing a chart”on a programmatic level.

The very first EA logic ispublished in the second episode of the “EA Development Diary”.

Because the risk-reward is extremely high,if you practice this normally, you will surely be targeted.

Therefore, I would like to share with you the“ironclad rules”to protect yourself when using EA or trading manually.