2/24 (Sat) GoGoJungle EA sales page recommended margin explanation
I am the Reiwa Double-Eye EA developer, Skijan-AI-Chat-Translation.
Today,
This is a commentary on the
recommended margin on Gogojun
The Gogojun explanation states the following.
It is published as shown below.
https://www.gogojungle.co.jp/post/1/15841
※1 About the recommended margin
GogoJungle's calculation of the recommended margin assumes that the maximum drawdown is 50% of available funds approximately.
Since the recommended margin varies depending on the number of held positions and lot sizes, please confirm the forward-running lots and positions.
Furthermore, the recommended margin tends to appear smaller for martingale EAs (where the number of lots increases from the second position onward) and grid EAs with multiple positions when the operating period is short; however, as the operating period lengthens and the number of held positions and lots increases, the recommended margin also increases.
Then, the calculation is
（capital required for opening positions）＋（maximum drawdown during the period × 2） is used. At that time, until the forward period, the minimum necessary funds are the amount obtained by adding the maximum drawdown once again to operate with a margin of safety. However, to put it bluntly, as explained in Gogojun's commentary above, during short forward-run periods, as long as you avoid large maximum drawdowns, the recommended margin will be very small. Moreover, each time you update the maximum drawdown, the recommended margin will keep increasing, so it is risky to take the recommended margin at face value. Ultimately, based on backtests over long periods, the margin required for opening positions + maximum drawdown is assumed to be the minimum necessary, and, as described above, by adding the maximum drawdown again, you may operate with a margin of safety. There is also another perspective. If you form a portfolio with multiple EAs, the basic approach is to add up the funds required for each EA, which means the capital needed for each EA is summed. Capital management is important to prevent capital shortfalls even for EAs that are already profitable. Also, please consider that “the maximum drawdown is something that should be updated continually.” I hope you think so. Well then! ━━━━━━━━━━━━━━━ 【Reiwa no Double-Eye EA Listing】 https://www.gogojungle.co.jp/users/112481/products 【Reiwa no Double-Eye Series Articles】 ■EA Beginner's Coursehttps://www.gogojungle.co.jp/finance/navi/series/1700 ■No-Need for Puffery! Gogojungle Problem Posing!https://www.gogojungle.co.jp/finance/navi/series/1701 ■Double-Eye FX Miscellaneous Talkshttps://www.gogojungle.co.jp/finance/navi/series/610━━━━━━━━━━━━━━━ 【Reiwa no Double-Eye's Beliefs】 We develop EAs by the proper methods,,
seek the support of as many people as possible,
maintain a long-lasting WIN-WIN relationship,
and aim to revitalize the EA market and improve literacy. |
