April 6 (Thu): Nikkei 225 vs US 10-year Treasury yield (Course: Riding the trend materials + supplementary explanation of government bonds)

Good morning ☀

This time, about products that ride on the trending topic.

A while ago「AI」became a hot topic.

And the many products that touted「AI」emerged.

「A genius programmer made this」

「Next-generation tools using artificial intelligence」

「Even beginners can leave it to AI…」

are some of the catchphrases that seem to easily lure beginners.

・「AI」Automated trading EA

・「AI」Strategy

・「AI」〇〇FX

and various other products?

And recently, what has appeared are

「CHAT GPT」extolling a certain method!

of that kind of product.

Well, since it’s a hot topic, it’s naturally intriguing, isn’t it lol

Everyonedoesn’t know the details, but hears that it’s amazing!So they’re easily captivated by such information.

And spending several tens of thousands on a product… ( *ˊᵕˋ)σ Phew.

Well, you can’t really make money from products that jumped on that trend, can you?‍♂️

Many products show performance, but all of them are backtested.

Therefore, you can adjust‘curve-fitting’as much as you want.

※‘Curve-fitting’Do you remember?

I’ll explain briefly, but

to derive the optimal parameters by fitting to past charts to achieve better results.

That’s what it means.

And since it’s just jumping on a recent topic‘Forward test’produces little to no results.

※‘Forward test’Do you remember this too?

The test is: what results would occur if you used a developed method or EA on future charts?

This is that kind of test.

A perfected method is

one that has been properly backtested and forward-tested,

and proven to have an edge.

But most products are only backtested.

Especially those riding on trends tend to follow this pattern.

Please don’t be easily deceived just because it’s a hot topic!

※One thing to remember,‘The 3 M of the market’

・Mental（60％）

・Money-Management（30％）

・Method（10％）

The method (Method) itself is not the most important factor.

Even if you chase only the method, you cannot steadily earn profits.Please understand that clearly!?

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