FX billion traders' methods automated into success with EA automated trading
Great results yet cheapUSDJPY-only Dow Theory EA Most robustDow Theory EA Swap-focused 5-currency-only MT4(MT5 version also recently released) |
What billion-dollar traders' methods rely on is,Dow Theory.
In the world of FX, those who are often called the “billion-dollar traders” share a common foundation: Dow Theory.
There is a direction to trends.
Trends continue until signaled to reverse. By observing higher highs and higher lows, or lower highs and lower lows, you can judge the trend’s state—this theory, proposed over a hundred years ago, remains a core basis for many successful traders’ decisions today.
I have attempted to automate the billion-dollar traders’ approach. Whether discretionary or rule-based, if you mechanically repeat a fixed procedure, automating it into a program is vastly more efficient.
Destructive differences in precision arise when discretionary judgments are not translated into a program. From a developer’s perspective, discretion pales in comparison to automated programs. There is such an overwhelming gap.
For example, if someone asks you to create an EA that can win with just 200,000 yen per year, could you do it? People who say the EA is useless probably have never built a program themselves (or cannot).
I don’t want people to judge EAs by preconceptions, nor do I want excuses like “you can’t use an EA if you can’t make one.”
However, to be honest, nothing went perfectly from the start.
From the beginning, not everything went smoothly
As someone who has lived in investing, I have bought three cars with investment income alone, and I believed that there would be others who could succeed besides me.
If I were to become a billionaire trader, it would be my— such a strong conviction guided me to enter the Gogojan site.
About a year ago, I offered an automated trading EA on Gogojan.
In the product description, I used dice as a metaphor.
“Investment is hard to fully believe in. It’s hard to persevere. People chase short-term wins rather than total gains. That’s why you must adhere to the rules with iron will. That’s why you should use automated trading.”— and I voiced this.
However, honestly, the EA’s results after release were not particularly good.
I spoke confidently, but the results weren’t great. People might have been disappointed. For the first six months after release, the performance was not strong.
How many stayed trusting for a year?
Over the year, overall positive, but how many continued using the EA from start to finish, trusting the journey?
Honestly, I think the answer is zero.
If you say, “See? It ends up positive,” that may be true, but the discussion ends there.
I still feel the underlying logic was correct, even now.
Nevertheless, in the first six months after release,there were far too many aspects to fix.
I truly apologize to those who purchased at the time for this.
But—wait a moment. This brings me back to the beginning, and I realize something anew.
Investing is full of twists and turns.
That’s why many people waver, making it hard to continue.
As I described a year ago, the EA’s course seems to have followed that same difficult path over the past year.
That’s right.Investing not only requires determining what is correct, but also, like this year’s EA, continuing is itself difficult.
This is where the billion-dollar trader arises, and a person who combines the ability to overcome the complexity with the stubborn persistence to endure—this is what I believe defines a billionaire trader.
Abolish DDS and move to MD—major system refresh
In the version upgrade from the old “DDS” system to the new “MD” system released in May this year, we implemented substantial changes to the system.
And since then, performance turned positive, but honestly, that result was possible only because we had that six-month head start after launch.
Without that trial-and-error period, we would not have reached the current form.
Specifically, what did we change
In this version upgrade, I personally made seven changes below.
① Reconsideration of Dow Theory judgment method (entry timing)
Fundamental criteria for trend reversal were rethought. We rebuilt the judgment logic to target more precise timing, such as the resistance-support reversal area near the third wave.
② Change in method for determining internal parameters
We revisited how parameters for each currency and each method are decided. Avoiding overfitting to past data, we aimed for a form that better adapts to actual market conditions.
③ Change in overall environment recognition thinking
Beyond the entry timeframe, we changed the very concept of automatically recognizing broader timeframe conditions. If the system determines conditions are poor, it will not force entries; it will autonomously adopt a defensive “skip entry” approach.
④ Enhancement of the settlement system
In addition to normal stop loss, we strengthened mechanisms for trailing stop and time-break-even, enabling early exit before large losses when profits have previously grown but later erode due to time or swaps.
⑤ Time-elapse trailing to secure profits
Based on elapsed time since entry, the profit targets for settlement are raised in stages. This prevents profits from eroding due to favorable moves reversing and swap costs.
⑥ Compounding feature
As balance grows from trading results, the lot size automatically increases accordingly, eliminating the need for manual adjustments and enhancing efficiency with capital growth.
⑦ Complete overhaul of the core system
Beyond individual improvements, we rebuilt the system’s foundation from scratch. This upgrade is a fundamental refresh, not a partial fix.
Proof over words—objective data demonstrating high performance
Among investment products, how many truly come with data-backed validation?
A MT5 version has also been released for sale.
From a developer’s perspective, I believe there is no product with a higher barrier to listing than EA. The reason is thatyou must present actual operating data without hiding it.
No matter how much you speak of “advantage,” the actual revenues, profit factor, win rate, and drawdown numbers do not lie. Good times and bad times are all recorded in the operational history.
And thisdata-backed validation is precisely the evidence that strengthens the persuasiveness of what this article has discussed, and serves as its foundation.
In conclusion
The start wasn’t particularly dazzling. In fact, the first six months were not a proud result.
Nevertheless, facing the challenges observed during that period and continuing to work on them has led to the current form.
I finally feel that automation—executing Dow Theory as the billion-dollar traders use it—in a way that doesn’t involve emotion is within reach.
If you’ve read this far and are interested, please check the product page for details.
Great results yet cheapUSDJPY-only Dow Theory EA Most robustDow Theory EA Swap-focused 5-currency MT4(MT5 version also recently released) |