How to choose an EA that functions long-term
Hello, this is Dr. Neko, thank you for your continued support.
Today, about how to choose an EA,
I would like to briefly share my thoughts.
Choosing a winning EA,
appears simple, but in reality it is very difficult,
I think many people realize this.
There are many factors involved in this,
but the most important is
that the “past market” and the “future market”
do not necessarily move in the same way,
which may be the biggest factor of all.
In an EA,
the “price movement” of a specific currency pair
is forecasted by applying a certain 'filter (entry condition)'.
If the conditions of this 'filter' continue to function in the future as well,
the performance of that EA can remain in a good state.
However, in reality,
the conditions of that filter inevitably become "different price movements,"
which cannot be avoided.
When this happens,
the EA’s performance deteriorates,
and you end up in a situation where the EA no longer functions
as expected.
Therefore, when deciding the entry conditions for an EA,
it is crucial to consider: 【What kind of filters (entry conditions) can function longer?】
This perspective is extremely important.
You could simply apply logic to create an EA,
which is of course possible, but
to make a filter that functions longer,
it is important to develop logic that captures the fundamental price movement tendencies of the market.
I believe this is the key.
For example, in our own work,
・Pips_miner_EA and
・NEO_Sca_Morning_USDJPY_turbo
are examples of EAs that
tend to have the market enter a range during certain time periods,
capturing these price movement characteristics,
and we believe this contributes to maintaining performance over the long term.
In this way,
an EA whose logic is built to respond to the actual, essential price movements
is the kind that will deliver stable long-term results,
so when choosing an EA, having this perspective can be very beneficial.
I think it would be very good to keep this viewpoint in mind.
Dr. Neko