Stable trading to target long-term asset formation: Interview with the developer of the EA "Hana Kurenai Ryok" (EA Master)
Kunanai EA Master’s new EA“Hana-kou-ryu-lv”Please tell me various things about it. First, what kind of EA is this?
EA Master: It is a scalping, day-trading EA with a maximum position size of 1, and the trading frequency is about 4 times a week.
Kunanai: How long do you typically hold a position?
EA Master: About 3 hours on average. In the maximum case, it has been 10 hours.
Kunanai: What trading logic does it use?
EA Master: When the higher trend is rising, the oscillator-type technicals of the 貝トレンド (shell trend) are used to enter on oversold conditions. Exits are done at overbought levels. Of course, when selling, the opposite applies, moving with a simple dip-buying and pullback-selling logic.
Kunanai: Which currency pairs does it target?
EA Master: USD/JPY. The timeframe is 5 minutes.
Kunanai: How have the backtests performed?
EA Master: The PF is 1.6, the risk-reward ratio is 20.4, which is quite a solid performance. The win rate is 78%, so it should be not very stressful to operate.
Kunanai: What are the standout points of this EA?
EA Master『【Video】How to develop a superior EA using correlation analysis, taught by EA Master!』There is a detailed explanation, but first, data analysis using Excel is used to build the logic with statistical methods, which gives trading stability.
Also, it has shown good results in pseudo- forward testing.
Kunanai: What is pseudo-forward testing?
EA Master: Over the past 12 years, we optimized with data from 12 years ago to 2 years ago, then performed forward-like testing on the most recent 2 years, and the revenue curve continues to rise.
Furthermore, since the revenue curve is a smooth, steadily rising line without bumps, it is suitable for compound growth. Even if an EA increases overall, if the ups and downs are too volatile, compound growth is not suitable. Because when it increases sharply in the short term, the lot sizes grow, and a large loss soon after can drastically reduce assets.
Kunanai: What kind of people is this EA suitable for?
EA Master: Those who want stable asset management and have a small initial investment. For people who worry about pension after retirement, run this EA long-term to grow money for the future. That way of thinking is,『【Video】The Power of Compounding is Magnificent! How to Grow from 100,000 JPY to several million in 10 years, and the portfolio, taught by EA Master』explained.
Kunanai: If I build a portfolio centered on Hana-kou-ryu-lv, what EAs would fit?
EA Master: Swing-type EAs would be good. In terms of currency pairs, trading with EUR/JPY and EUR/USD would be favorable.
Kunanai: Thank you. Finally, could you share a bit about the career path you have followed so far?
EA Master: I worked for a major IT-related company as a systems engineer for many years. I started FX before retirement, initially engaging in discretionary trading. From morning till night I traded every day, but I decided to stop doing inhuman things, so I began developing automatic trading.
Kunanai: How many EAs or indicators have you developed so far?
EA Master: I have created thousands. I pride myself on understanding almost everything about MT4.
Kunanai: Please tell me your goals for the future.
EA Master: I want to create EAs that provide stable profits for those with low pension and future financial concerns, and I am continuing research day and night.