Romance-binding AI Development Story Episode 8 — Why the "Three Circle Cross" (Reasons for choosing USDJPY, GBPJPY, and EURJPY)
From hereTechnical Sectionbegins. First question might be, isn’t it, “Why, of all things,the three-circle cross?” Enmusubi AI watches USDJPY, GBPJPY, and EURJPY side by side, and quietly buys only the one that lags behind among its peers. This time, I’ll only discuss the reasoning in the conceptual part for choosing “these three” and “this lineup.”
The core of Enmusubi AI is the idea of “buy the laggards” (Episode 2). However, lag implies thatthere is a comparing counterpart, and only then is it detectable. Watching just one asset cannot determine whether it is lagging or normal.
Therefore, we line up peers on the same axis of “yen.” By comparing three that should move on the same fundamental, among them you can see the one that isthe only one not blooming yet. Lining up multiple assets provides a base to measure lag fairly.
① Direction tends to align against the yen
All three share the same axis, the yen, even though the counterparts differ. When the yen strengthens, all three tend to fall; when the yen weakens, all three tend to rise. Because they move in the same direction, comparing “lag” among them is meaningful.
② High liquidity and stable costs
All are major yen crosses with active trading. Less common issues like sudden widening of spreads or slippage seen with minor pairs are comparatively rare, making it easier to move according to the rules.
③ Price movement shows honesty and history
There is abundant historical data, enabling long-term validation. By avoiding highly quirky assets and focusing on the straightforward “lag → mean reversion” nature, these three are easy to observe.
Expanding to more minor yen crosses broadens candidates, but also increases costs and price swings.Rather than expanding, narrow to three with aligned characteristics. This is what I believe pairs well with a no-stop-loss design.
※The diagram illustrates Enmusubi AI’s concept of “compare three and buy the laggard.”
There is a reason for not buying all three simultaneously and instead focusing on the one that lags. Among peers that bloom (rise) earlier, the one that has not bloomed yet is expected to catch up in a yen-wide market. Choosing the laggard is itself a bet on mean reversion.
At the same time, by selecting a different asset from the three each time, there is also an effect of not over-allocating to one currency pair. By only choosing laggards, you can naturally aim for both mean reversion and diversification—this is the idea.
I’ll be upfront. The common axis being the yen is a strength, but also thebiggest weakness. If there is a rapid, comprehensive yen appreciation,all three will drop at the same time. Even with different assets, since they all move on the same “yen,” they cannot truly be diversely spread.
That is why Enmusubi AI is designed not to cut losses, and I repeatedly emphasize doing so with ample funds.Always with excess capital. It’s not about feeling safe with three assets. In the face of uniform yen appreciation, all three may head toward losses together—please understand this premise and monitor accordingly.
- “Lag” can only be measured with a counterpart → laying them out side by side is the foundation
- USDJPY, GBPJPY, EURJPY = direction against the yen is aligned / high liquidity / cost stable / price movement honest and historical
- Buy only the one lagging = aim for mean reversion and prevent asset bias
- Weakness: because the common axis is the yen, in a full yen-strength scenario all three drop together (not fully diversified)
- Therefore, a no-stop-loss design should always use ample funds
※This article is provided for information purposes and is not investment solicitation. The performance results shown are past performance and do not guarantee future profits. FX and CFD trading involve risk. Please make investment decisions at your own responsibility.