Challenge automated trading using MT4!! Let's get started! EA Life | Episode 18: EA Operation Techniques II [Masamasa Kakizawa]

Masanao Kakizawa Profile

Kakizawa Masanobu. Since 2009, he has begun developing automated FX trading systems and has provided numerous automated trading systems to securities companies and users, starting with EasySniper and MultiAgent. At Invast Securities’ automated trading service "System Trade 24", the provided strategy MultiAgent achieved overwhelming results and evaluation in the 2016 Annual Awards. Additionally, at Himawari Securities’ automated trading service "Ecotrade," the provided strategy "Hikae Venus" maintained the top number of users for more than a year from 2013 to 2014. The user count exceeds 700. He is currently offering Dream Agent FX, an evolution of MultiAgent.

In this series, we focus on FX automated trading systems, specifically EAs that operate on MetaTrader 4 (MT4), and have professional trader Masanobu Kakizawa navigate the knowledge and know-how needed to operate them. If you are considering operating an EA, or if you are already using an EA, please refer to this.

*This article is a reprint and edited version of an article from FX攻略.com November 2019 issue. Please note that the market information described in the text may differ from current market conditions.

There is an Optimal Order for Portfolioing

Hello everyone. This time is the final installment of "EA Operation Techniques" part 2. In the first part, we explained that portfolioing EAs is advantageous and the reasons why. In this issue, we will look at how to actually portfolio EAs and the steps involved.

First, portfolioing EAs follows these steps.

① Decide your own "target profit rate" and "risk tolerance"

② Select candidate EAs for operation

③ Conduct backtests for the selected individual EAs (calculate "expected profit rate" and "expected risk tolerance")

④ Calculate the expected profit rate and expected risk tolerance for the selected EA portfolio

⑤ Compare your target profit rate and risk tolerance with the expected profit rate and expected risk tolerance

⑥ Repeat steps ❹–❺ or ❷–❺ until satisfied

The most important factor when portfolioing EAs is how much your own target profit rate and risk tolerance are.