Why was the EA that had been winning until yesterday suddenly struggling?

There are EA strengths“profitable market conditions”and“weak points in the market”as well

Of course, even with the same EA and the same settings, daily results will not be identical.

Yesterday was going well, but one day you suddenly incur a large unrealized loss.

When operating an EA, you will encounter such scenarios.

One of the reasons is the difference in market environment.

 Range market and trend market

A grid-type EA that adds positions by leveraging retracements tends to accumulate profits more easily in range markets that move up and down within a certain range.

Even if the price temporarily moves in the opposite direction, it can be closed in multiple positions at once if it returns afterward.

On the other hand, you need to be careful with a strongly trending market that moves in one direction.

If the price continues moving with little retracement, the number of positions will increase, and unrealized losses will tend to grow.

 Scenes where the market moves significantly

When observing the market, there are times when price levels that many higher timeframe traders monitorare broken decisivelysuch asthe third wave after a trend reversalanda large one-way price rangeemerges.

Such moves can be opportunities for discretionary traders, but can be tough for EA that rely on returning to a range.

However, even if you think, “If that’s the case, just stop the EA before the trend begins,” it isn’t so simple in real markets.

Sometimes it breaks out and then returns to the range, and sometimes it seems the range will continue, only to suddenly move strongly.

Even if it’s clear after the move, it is difficult to judge accurately every time before the move.

What to do when hitting a difficult market

If avoiding all difficult markets is hard, another important idea is how much damage you can minimize when you actually hit that market.

In EA operation, there is a tendency to focus on increasing profits, but taking a large loss even once can significantly reduce the profits accumulated up to that point.

That’s why it’s not just about “how much you can win,”“how much loss you can tolerate when a difficult market arrives”that is also necessary.

This is not simply solved by increasing margin.

For that reason, it’s important not only to look at profits or losses, but also to reflect on“in what kind of market did the unrealized losses become large”and learn from it.

By accumulating such experiences, you’ll gradually see the characteristics of markets where your EA struggles.

Rather than assuming it will operate the same every day, sometimes lowering the operating time or creating time to observe depending on market conditions

is also a way of thinking to minimize damage.

You can’t judge an EA’s strength by profits alone

If you only look at profits when things are going well, you’re seeing only one side of that EA.

For long-term operation, it’s important to know how it behaves under various market conditions, not just how large the profits are.

As you review daily results together with market movements, consider how to relate to that EA.

I believe such continual practice leads to long-term operation.