3/2 (Sat) How to build an EA portfolio
This is Double-E in Reiwa by EA developer, Dabu-ru-i.
This time
「How to Build an EA Portfolio」.
A very important topicwill be discussed.
In the first place, one EA cannot cover all market environments,
in other words, “there is no holy grail in EAs.” Therefore,
you need to assemble a portfolio.
Now,
to summarize the conclusion
① Run EAs for variouscurrency pairs.
② Run EAs on varioustimeframes.
③ Run EAs of varioustypes.
④ Run EAs in varioustime periods.
⑤ Run EAs from variousEA developers.
This is how it will be, I think.
Now, I will explain step by step.
Regarding ①,
each currency pair has its own price movement characteristics.
USD/JPY, cross yen, and EUR/USD, among others,
including currency pairs that do not include the above.
As a rough image, USD/JPY is the main driver,
with price moves led by the cross yen,
and influenced by the dollar crosses like EUR/USD,
so that the cross yen is affected.
With that in mind,
it is common to equip EAs for USD/JPY, EUR/JPY, GBP/JPY,
EUR/USD, GBP/USD,
and align these EAs.
Also, as currency pairs that do not include the above
USD/CAD, AUD/CAD, AUD/NZD,
these are around the ones I think.
Due to the relationships between developed and resource-rich countries,
as well as neighboring country relations, they are interesting.
②Different timeframes change price movement characteristics.
Generally,
short-term timeframes favor counter-trend moves,
long-term timeframes favor trend-following.
In scalping, oscillators tend to be used for counter-trend trades.
On daily charts, discretionary trading may include
point-and-figure methods,
weekend traders exist as well, but
all of them trade in the direction of the trend.
③ Regarding various types,
・Scalping (buying on dips, selling on rallies)
・Scalping (counter-trend)
・Anomalies (timed trades)
・Morning scalping (trend-following direction)
・Morning scalping (counter-trend direction)
・Trend following
・Momentum swing
・Counter-trend swing
・Breakout (scalping)
・Breakout (trend-following)
・Ninping (no martingale)
・Ninping (with martingale)
Also, personally,
and so combining various types helps,
for example, while trend following is increasing profits,
you can steadily earn with scalping,
or regardless, anomalies trade,
increasing the variety’s depth is beneficial.
Also,
Ninping and martingale are difficult for portfolios, but
without martingale, depending on the idea, you could consider it as a “multi-position EA.”
④Time of day changes price movement characteristics as well.
For example in Japan time,
USD/JPY tends to rise toward 9:55 on the Goto day,
after 9:55 USD/JPY tends to fall,
during European hours there is movement that hits stops,
and in NY hours stops are hit further,
tend to reach daily highs and lows,
and there are movements around important economic indicators,
and liquidity changes by time of day,
so including the “time-of-day anomaly” and morning scalping in the portfolio makes sense,
and, in addition, having timeless EA combinations is good.
⑤Every EA developer has a set of “commonly used technicals.”
Together with that, there are common combinations of these technicals,
in other words, a commonly used logic exists.
Therefore,
If you only assemble a portfolio with EAs from the same developer,
you are likely to incur losses at the same timing,
which is not wise for portfolio construction.
In my case,
I am mindful of this and diversify the logic,
but generally, it’s good to carefully choose EAs from various developers.
So,
taking all of the above into account, build a balanced portfolio
in a way that suits you—“your own way.”
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【Reiwa no Double-E EA Listing】
https://www.gogojungle.co.jp/users/112481/products" target="_blank">https://www.gogojungle.co.jp/users/112481/products
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【Reiwa no Double-E’s serialized articles】
■EA for Beginners
https://www.gogojungle.co.jp/finance/navi/series/1700" target="_blank">https://www.gogojungle.co.jp/finance/navi/series/1700
■No Nonsense! Gogojungle Problem Posing!
https://www.gogojungle.co.jp/finance/navi/series/1701" target="_blank">https://www.gogojungle.co.jp/finance/navi/series/1701
■Double-E FX musings
https://www.gogojungle.co.jp/finance/navi/series/610" target="_blank">https://www.gogojungle.co.jp/finance/navi/series/610
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【Reiwa no Double-E’s Philosophy】
Develop EAs using proper methods, and
gain the growing number of users’ trust,
and maintain a long-term WIN-WIN relationship,
aiming to revitalize the EA market and raise literacy.
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