Are you diversifying the EA genres?
If you only use the same genre,
you may suffer losses at the same time

Some people operating EAs may

think, “I’m diversified because I’m running multiple EAs.”

There may be others who think that.

However, in reality,

increasing the number of EAs and diversifying risk are not necessarily the same thing.

This time, I would like to discuss the importance of “genre diversification” in EA management.

Even with multiple EAs, diversification may still be lacking

For example,

Three mean-reversion EAs
Two grid/doubled-down EAs (note: doubling down is a mean-reversion concept)
Two range-specific EAs

In this kind of setup, it may look like you’re diversified because you’re operating seven EAs.

But,

there’s a possibility that they’re all optimized for similar market conditions.

If that’s the case, as soon as the market enters a environment where it’s challenging,

multiple EAs will struggle at once.

The important thing is not the number of EAs but the variety of logic

For example,

EAs that excel in trend markets

Trend-following EAs
Breakout EAs

EAs that excel in range markets

Mean-reversion EAs
Oscillator-type EAs

EAs that exploit market quirks

Anomaly EAs
Time-of-day EAs

Each of these tends to generate profits in different environments.

Therefore,

by combining EAs from different genres,

you can increase resilience to changes in market conditions.

Why do you end up with more of the same genre?

This is also related to users’ psychology.

For example,let’s say there’s a recently performing mean-reversion EA.Then,the impression grows that “mean-reversion EAs are good.”and you may end up purchasing another mean-reversion EA.However,as a result,the entire portfolio could end up dominated by mean-reversion EAs, which is not uncommon.The same idea applies to mutual funds and stocksIn stock investing,holding too many companies in the same sector concentrates risk.For example,holding a large amount of semiconductor stocks alone can cause assets to fall broadly if the industry deteriorates.The same is true for EAs.Even if EAs have different names and developers,if their underlying logic is similar,they may carry the same risks.My ideal approach to EA managementPersonally, I have long prioritizedcombining multiple EAs with different viewpoints rather than relying on a single EA.For example,Trend-basedMean-reversion-basedAnomaly-basedTime-of-day-basedetc.,to combine EAs with different profit-earning conditions.Of course, not every combination will be profitable.However,it can reduce the risk of “all of them failing at the same time.”The same logic applies to funds and stocksSummaryIn EA management, what matters isnot the number of EAs but the diversification of logic.Even if you own multiple EAs,if they are all based on similar thinking, you may effectively rely on a single strategy.When adding EAs going forward,consider:“Do they resemble what I already own?”“Can they perform well in different market environments?”Keep these viewpoints in mind as well.For long-term wealth-building, I believe genre diversification of EAs is as important as capital management.━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━【From Starting an EA to Intermediate: Summary of the Flow】■First, mastering EA installation is essential.--------------------------------------------------------------------●MT4 EA (Expert Advisor) and Indicator installation steps https://www.gogojungle.co.jp/post/1/8212--------------------------------------------------------------------●GogoJungle video version*--------------------------------------------------------------------At first you may not understand everything at once and stumble.I also stumbled many times at first, so don’t rush—you’ll be fine!If you have questions, use the “Contact form” to ask!----------------------------------■ GoGoJungle “Contact form”https://www.gogojungle.co.jp/inquiry----------------------------------【How to choose an EA】Now that you’re ready to operate EAs,you may worry, “I don’t know which EA will win… I don’t want to lose…”Hence, in the Reiwa era, the doule E’s,we published articles so you can gauge goodness through “backtests.”We’ve serialized the following.--------------------------------■ How to find winning EAs from backtests https://www.gogojungle.co.jp/finance/navi/series/1714----------------------------------The real question is whether it can actually win in practice—the forward performance matters,butbacktests support that assessment.Typically, backtest periods are longer than forward periods,and whether the forward results are due to chance can be inferred by mastering backtest evaluation.【How should EA risk management be handled?!】And even if you acquire a highly capable EA,neglecting risk management will lead to failure in EA trading.Therefore, for EAs,how should risk management be done?This is answered in the article below.----------------------------------■ About calculating EA risk management https://www.gogojungle.co.jp/finance/navi/articles/64703----------------------------------【EA operation mindset is also important】And,to sustain EA operation long-term, the “EA operation mindset” is also important.You can read those articles at,----------------------------------12/30 Year-end & New Year SP!! A Complete EA Course Part 3 https://www.gogojungle.co.jp/finance/navi/articles/805518/12 [Obon holiday special] Now you too can be an EA Master! “EA operation mindset upgrade”https://www.gogojungle.co.jp/finance/navi/articles/728298/17 [Obon holiday special] Now you too can be an EA Master! “Notes during EA operation”https://www.gogojungle.co.jp/finance/navi/articles/73797----------------------------------That’s how it is,it’s quite extensive but very important, so even if you can’t understand it immediately, please make sure to review it!And then!━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━【Reiwa-era Double-EA Listing】https://www.gogojungle.co.jp/users/112481/productsSpecifically, categorized the EA from Reiwa-era Double-EI https://www.gogojungle.co.jp/finance/navi/articles/67162(Genre diversification is essential when building a portfolio)━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━【Reiwa-era Double-E articles in series】■ EA Beginner’s Guide https://www.gogojungle.co.jp/finance/navi/series/1700--------------------------------● Easy tips to spot bad products (in the context of EAs)https://www.gogojungle.co.jp/finance/navi/articles/64738--------------------------------● Where to check first when you have questions about EAs https://www.gogojungle.co.jp/finance/navi/articles/65619--------------------------------● Where is GoGoJungle’s inquiry form?https://www.gogojungle.co.jp/finance/navi/articles/64723--------------------------------■「EA risk management calculation methods」https://www.gogojungle.co.jp/finance/navi/articles/64703--------------------------------■【Portfolio version】 EA risk management calculation methods https://www.gogojungle.co.jp/finance/navi/articles/65978--------------------------------■ How to find winning EAs from backtests https://www.gogojungle.co.jp/finance/navi/series/1714--------------------------------▲ No bias! GoGoJungle raises questions!https://www.gogojungle.co.jp/finance/navi/series/1701--------------------------------▲ Reiwa-era Double-E reveals “Buy the dips, Sell the rallies” logic now!https://www.gogojungle.co.jp/finance/navi/articles/65010--------------------------------▲ Double-E FX chatter https://www.gogojungle.co.jp/finance/navi/series/610--------------------------------━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━【Reiwa-era Double-E’s Principles】Develop EAs with sound methods,to gain the trust of more people,maintain a lasting WIN-WIN relationship,and aim to revitalize the EA market and improve literacy.━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━https://youtu.be/JVdq3Hih3vg?si=zvGKUD0II0P_iv8z

let’s say there’s a recently performing mean-reversion EA.

Then,

the impression grows that “mean-reversion EAs are good.”

and you may end up purchasing another mean-reversion EA.

However,

as a result,

the entire portfolio could end up dominated by mean-reversion EAs, which is not uncommon.

The same idea applies to mutual funds and stocks

In stock investing,

holding too many companies in the same sector concentrates risk.

For example,

holding a large amount of semiconductor stocks alone can cause assets to fall broadly if the industry deteriorates.

The same is true for EAs.

Even if EAs have different names and developers,

if their underlying logic is similar,

they may carry the same risks.

My ideal approach to EA management

Personally, I have long prioritized

combining multiple EAs with different viewpoints rather than relying on a single EA.

For example,

Trend-based
Mean-reversion-based
Anomaly-based
Time-of-day-based

etc.,

to combine EAs with different profit-earning conditions.

Of course, not every combination will be profitable.

However,

it can reduce the risk of “all of them failing at the same time.”

The same logic applies to funds and stocks

SummaryIn EA management, what matters is

not the number of EAs but the diversification of logic.

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

【From Starting an EA to Intermediate: Summary of the Flow】

■First, mastering EA installation is essential.

--------------------------------------------------------------------

●MT4 EA (Expert Advisor) and Indicator installation steps

https://www.gogojungle.co.jp/post/1/8212

--------------------------------------------------------------------

●GogoJungle video version*

--------------------------------------------------------------------

At first you may not understand everything at once and stumble.

I also stumbled many times at first, so don’t rush—you’ll be fine!

If you have questions, use the “Contact form” to ask!

----------------------------------

■ GoGoJungle “Contact form”

https://www.gogojungle.co.jp/inquiry

----------------------------------

【How to choose an EA】

Now that you’re ready to operate EAs,

you may worry, “I don’t know which EA will win… I don’t want to lose…”

Hence, in the Reiwa era, the doule E’s,

we published articles so you can gauge goodness through “backtests.”

We’ve serialized the following.

--------------------------------

■ How to find winning EAs from backtests

https://www.gogojungle.co.jp/finance/navi/series/1714

----------------------------------

The real question is whether it can actually win in practice—the forward performance matters,but

backtests support that assessment.

Typically, backtest periods are longer than forward periods,

and whether the forward results are due to chance can be inferred by mastering backtest evaluation.

【How should EA risk management be handled?!】

And even if you acquire a highly capable EA,

neglecting risk management will lead to failure in EA trading.

Therefore, for EAs,how should risk management be done?

This is answered in the article below.

----------------------------------

■ About calculating EA risk management

https://www.gogojungle.co.jp/finance/navi/articles/64703

----------------------------------

【EA operation mindset is also important】

And,to sustain EA operation long-term, the “EA operation mindset” is also important.

You can read those articles at,

----------------------------------

12/30 Year-end & New Year SP!! A Complete EA Course Part 3

https://www.gogojungle.co.jp/finance/navi/articles/80551

8/12 [Obon holiday special] Now you too can be an EA Master! “EA operation mindset upgrade”

https://www.gogojungle.co.jp/finance/navi/articles/72829

8/17 [Obon holiday special] Now you too can be an EA Master! “Notes during EA operation”

https://www.gogojungle.co.jp/finance/navi/articles/73797

----------------------------------

That’s how it is,

it’s quite extensive but very important, so even if you can’t understand it immediately, please make sure to review it!

And then!

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

【Reiwa-era Double-EA Listing】

https://www.gogojungle.co.jp/users/112481/products

Specifically, categorized the EA from Reiwa-era Double-EI

https://www.gogojungle.co.jp/finance/navi/articles/67162

(Genre diversification is essential when building a portfolio)

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

【Reiwa-era Double-E articles in series】

■ EA Beginner’s Guide

https://www.gogojungle.co.jp/finance/navi/series/1700

--------------------------------

https://www.gogojungle.co.jp/finance/navi/articles/64738

https://www.gogojungle.co.jp/finance/navi/articles/65619

https://www.gogojungle.co.jp/finance/navi/articles/64723

https://www.gogojungle.co.jp/finance/navi/articles/64703

https://www.gogojungle.co.jp/finance/navi/articles/65978

https://www.gogojungle.co.jp/finance/navi/series/1714

https://www.gogojungle.co.jp/finance/navi/series/1701

https://www.gogojungle.co.jp/finance/navi/articles/65010

https://www.gogojungle.co.jp/finance/navi/series/610

【Reiwa-era Double-E’s Principles】

Develop EAs with sound methods,

to gain the trust of more people,

maintain a lasting WIN-WIN relationship,

and aim to revitalize the EA market and improve literacy.

━━━━━━━━━━━━━━━https://youtu.be/JVdq3Hih3vg?si=zvGKUD0II0P_iv8z

Are you distributing EA genres across different categories? If you only have the same genres, it may lead to losses at the same timing.

Are you diversifying the EA genres? If you only use the same genre,you may suffer losses at the same time

Even with multiple EAs, diversification may still be lacking

The important thing is not the number of EAs but the variety of logic

EAs that excel in trend markets

EAs that excel in range markets

EAs that exploit market quirks

Why do you end up with more of the same genre?

The same idea applies to mutual funds and stocks

My ideal approach to EA management

The same logic applies to funds and stocks

Are you diversifying the EA genres?
If you only use the same genre,
you may suffer losses at the same time