What are semi-automatic EA operations and discretionary trading inspired by SMC from consultants who came from the Big Four firms? [Mr. gonzo]

Thirteen years at a SIer (software contract development company),

then at one of the Big Four firms and a mobile carrier,

working on system design and more,Mr. gonzo
shared his story with us.

What I found interesting is that among people in consulting,
those who go independent and become freelance consultants

pursue what Mr. gonzo calls an “exit strategy,” that is,
as one way of securing income,they invest quite a lot.

Among those investments,since theycan develop systemsand understand them,
these individualsoften run leveraged products like FX and CFDs

using EAs,whichwas a notable point.
Consultants, by the nature of their work, habitually conduct thorough research,

and they apply that same rigor to their own trading—researching exhaustively—and even for EA
operations, they do whatever it takes to craft methods that are hard to lose.

Many of them have built such methods and are profiting,we were told.

Mr. gonzo

After graduating from a science/engineering university, he worked 13 years as an engineer at a major SIer.
He accumulated software design experience at Big Four firms, mobile carriers, and manufacturers, and is now active as a freelance consultant.

As an exit strategy, he also focuses on investing, operating an EA he developed himself alongside discretionary trading.

It really drove home that the people who earn substantial profits with EAs
tend to be these kinds of individuals.

The semi-automatic EA
used by Mr. gonzoin his own tradingis the Gonzo Special.

Gonzo Special

1. Fully automated operation
2. Semi-discretionary, pyramiding-based profit expansion
3. Use as a discretionary support tool

is a semi-automatic EA with these three functions.

First, let’s look at1. Fully automated operation.

Below are over six years of backtest results from 2019.

Without using discretion to halt it at any time,
it has recorded solid performance in fully automated mode.

As mentioned earlier, when consultants apply thorough research to EA operations,
they often achieve good outcomes,

and thatthorough research
appears to be reflectedin the EA’s logic.

Next,2.Semi-discretionary, pyramiding-based profit expansion
refers to adding positions

to build on profits when an existing, in-trend entry
is in unrealized gain—this is the pyramiding function,so to speak.

You turn off fully automated operation and
activate the pyramiding function.

For exits, you use
the “Close All” button to close all positions together.

When deciding how to time
the full close of pyramided positions,

you can also use

3.Use as a discretionary support tool

as a function.

Mr. gonzo considersSMC(Smart Money Concept)
effective for trading,and Gonzo Special

also incorporatesFVG(Fair Value Gap,a gap created by sudden price movement where buy/sell
balance breaks down, occurring within the most recent three candlesticks,

i.e., a price void.
Because price tends to return later to fill this void,

it’s used as support/resistance or an entry point
.) and,

Order Blocks(OB: price zones where large players placed
heavy orders—the origin of sharp price moves,

considered “footprints” that tend to cause rebounds when price revisits them.)

These are utilized.
The image below showsGonzo Special3. Discretionary Support Tool

displayed on a chart.

The green band at the lower right of the chartis an OB.
In actual trading, when price touches the OB,

it’s used to judge entry or exit timing,
among other decisions.

With Gonzo Special, you firstuse it in fully automated mode,
and once you’re familiar and see a chance to aim for larger profits,

you use pyramiding.
Then, by using the discretionary support tool,

you can further hone your discretionary trading skills—
I found it to be multi-functional and excellent.

Written by Shinobu Hayakawa