Wedding AI Development Story Episode 10 — Interval and quantity for replenishment (placing “averaged” add-ons in a planned manner)
In the last episode (Episode 9), we talked about fairly selecting a “late to bloom” one using ATR. So what if it moves against after you buy? Enmusubi AI isto average down (nampin) and wait with a lower average entryby design. However, nampincan be both a friend or a weapon depending on how you do it. This time, I’ll discuss how to decide the add-on intervals and how many units to placenot by emotion but by planning.
The most likely to burn through capital in discretionary trading is nampin without a plan. Each drop prompts an emotional “this must be the bottom” add-on. Intervals are scattered, quantities unlimited. Before you know it, you’ve descended deeply and can’t come back — I’ve learned this through painful experience.
That’s why, when I designed the EA, I first decided this.“How much to buy more at” isn’t fixed. Decide first “how far it goes against you” and “how many to hold”. Abandon the sense of cheapness, replace with rules. This was the key when translating nampin into a design.
Add-on intervals are not fixed pips butmultiples of ATR (the currency’s usual range). The ruler introduced earlier works here as well. Currencies with high movement get wider spacing; tranquil currencies get narrower. Spacing automatically aligns with volatility.
There are two effects. One: in volatile markets the spacing widens automatically,so you don’t place bullets at the same width too many times. Another: removes room for emotions. If the entry value drops by the ATR-width as decided most recently, you place the next bloom. It won’t move beyond that.
Another important point isthe maximum number of add-ons per cycle. If you can keep buying down without limit, when the market trends in one direction you’ll end up firing bullets until funds run out. This must be avoided.
Therefore Enmusubi AI adopts the conceptto compute the upper limit from your own funds. Draw the line before emotions rise: “No more add-ons when we reach this point.”Put a brake on the aggressiveness of the tool in advance, in other words.
※ The diagram illustrates Enmusubi AI’s concept of “planned nampin.”
As I’ve always told you. Even with evenly spaced intervals and a cap on the number,if a broad, long-term yen appreciation comes, all positions lined up up to the cap will be under unrealized losses. Planned nampin is a way to organize how to endure, not a magic to eliminate losses. Even if you line up to the cap, make sure your account can endure,always compute the cap from your available funds in advance. I’ll repeat this point as long as needed.
- Nampin without a plan (scattered intervals, unlimited count) is the riskiest
- Add-on intervals are evenly spaced by the ATR width — automatically aligned to volatility
- Set a cap on units and decide in advance “how long to endure” calmly
- Even with planning, in a full, long-term yen appreciation the gains will align up to the cap causing unrealized losses → cap should be calculated from spare funds
※This article is for information provision and does not constitute investment solicitation. The operational results shown are past performances and do not guarantee future profits. FX/CFD trading involves risks. Please make investment decisions at your own responsibility.