Grid-type Pyramid EA "Wave Riding Kinjirō" completion just now! In MT5 backtests, 1,000,000 yen over two years grew to over 20,000,000 yen.

Finally, the completion of the scalping EA is approaching.

As for the progress, to publish the entry logic, we recorded a video of the grid-type pyramid trading EA “Wave Rider Kinjiro,” which was completed up to the first stage, so if you’re interested, please take a look.

First, I will explain the entry logic.

Generally, the grid adopted in averaging down and martingale is a method where an internal parameter specifies a fixed interval in advance, and as unrealized losses increase up to that value, the number of positions is increased while adding them up.

I have tested many free EAs distributed through numerous IB accounts as a subject of logic research, but I have personally experienced that at some point the account will inevitably go broke.

The method is a grid-type averaging-down martingale, so by specifying 10 pips as an internal parameter and setting the martingale multiplier of the lot to 2.0, for example, suppose the first long entry starts at 0.01 lots.

If the market moves 10 pips in the opposite direction to the expectation, the second position is added as a long position of 0.02 lots.

If it moves another 10 pips against you, the third is 0.04 lots, the fourth is 0.08 lots, the fifth is 0.16 lots, the sixth 0.32 lots, the seventh 0.64 lots, the eighth 1.28 lots, the ninth 2.56 lots, and the tenth 6.12 lots, doubling each time.

With such counter-moves, 10 pips moved against you nine times, so suppose it moved 90 pips in the opposite direction.

Movements of this magnitude around an economic indicator are fairly common, but the total position becomes 11.23 lots.

What would happen if this 1.12 million units of currency moved further in the opposite direction by another 10 pips?

Or if the retracement is shallow and you cannot close the position, and it moves another 100 pips in the opposite direction?

Some claim that because the martingale multiplier is 1.2x, it is less likely to fail, or that the EA stops during indicators or automatically avoids indicators to prevent failure, but in many of these latest EAs, my real account has actually failed many times.

The risk when the market suddenly moves strongly in the opposite direction with such logic is immeasurable.

However, there are also advantages.

When the position becomes large and the unrealized loss grows, a sharp reversal can yield substantial profits.

There are many cases where a large unrealized loss turns into a large unrealized profit, allowing profits to be realized.

Many free EAs claim monthly returns of 100% to 500% because they are largely based on this grid-type averaging-down martingale.

If you operate an EA with a 100% monthly return on a simple basis, 1 million yen would become 2 million yen in the second month, so if you're lucky, you could withdraw 1 million yen after about a month, but if you’re unlucky, your account would be exhausted in the first month.

If you hit a forced stop-out of 1 million yen, should you deposit another 1 million yen?

I will not.

So what will I do?

The journey to find the Holy Grail begins.

I start running an EA with about 100% monthly returns on another IB account for free.

While repeating such things, I suddenly thought.

Why isn’t there a reverse logic?

In the continued increase of unrealized losses, or rather in the direction of further losses, people believe the reversal will yield large profits, yet in reality many accounts fail. Why isn’t there a reverse logic?

Even after searching, I could not find a reverse logic.

So I decided I must create it myself!

Thus, the grid-type pyramiding EA “Wave Rider Kinjiro” was born.

In this progress report, I mainly explained the entry.

What would happen if the entry logic were the exact opposite of conventional averaging-down martingale?

As expected, it became a boom with 20 times profit in two years, but there are still issues.

The exit is still far from complete, so I will add several additional exit rules as new features, so please look forward to the next progress update.

With the new exit features, if profits improve, I plan to equip Super Recovery with several new exit functions as well, and introduce conditions before hitting the take-profit to achieve some gains at an earlier stage.

Expediting exits may not yield huge profits, but given recent trading results, I think for users the immediate target of 10 million yen is more appealing than a billion yen.

In any case, the two EAs will form the strongest portfolio combination, so please continue to support Wave Rider Kinjiro as well.

With completion in one month and Gogojungle testing in one month, I expect they can be deployed in about two months.

See you again!