EA whose maximum drawdown exceeds the initial margin of 1,000,000 yen
EA developer Reiwa no Double-E is here.
Various EAs are listed for sale on Gogojungle.
Profit amounts tend to catch the eye, but
as for risk management,
the maximum drawdown should also be watched carefully, and
if there is no capital amount equal to or greater than the required margin
in reality, you will go bankrupt.
On Gogojungle's EA sales page,「Recommended Margin
」is calculated assuming the maximum DD is about 50% of excess funds, so
the calculation is a bit different as well, so
this is
「Maximum Drawdown」+「Required Margin」
please keep in mind.
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Among these,
occasionally on the sales page backtests
「An EA whose maximum drawdown exceeds the initial margin of 1 million yenexists.
What does this mean?
This means“it can bankrupt depending on when it is run.”Therefore, even if backtests show upward trends,
depending on when it is operated, it will surely bankrupt.
Therefore, if you run it exactly as the backtest suggests,
it may bankrupt immediately after starting operation.
So
either reduce the lot size to avoid bankruptcy, or increase the funds.
How much is good,
of course, contact the EA developer.
Well then.
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【Reiwa no Double-EA Listing】
https://www.gogojungle.co.jp/users/112481/products
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【Reiwa no Double-Eの serialized articles】
■EA Beginner's Course
https://www.gogojungle.co.jp/finance/navi/series/1700
■No Sugarcoating! Gogojungle Problem Posing!
https://www.gogojungle.co.jp/finance/navi/series/1701
■Double-E FX Ramblings
https://www.gogojungle.co.jp/finance/navi/series/610
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【Reiwa no Double-E’s Beliefs】
Develop EAs by principled methods,
and gain the trust of more people,
to maintain a long-lasting WIN-WIN relationship,
aim to revitalize the EA market and improve literacy.
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