2/28 (Wed) Important discussion when handling EA
EA developers'We are in the era of double EAs in the Reiwa era.
This is what I think are important points when handling EAs.
This is only based on my experience.
What matters is,
・Ability to discern an EA
・Portfolio
・Risk management
・Mental (discipline)
In broad terms, those are the key points.
The ability to discern an EAis
something people tend to underestimate,
Backtests are important.
Purchasing an EA is
so important that it could be said you are investing in the quality of its backtest.
The forward performance is judged based on how good the backtest is.
In the first place, EA developers base their development on backtests.
Even just the backtest can give a fairly good indication of an EA's quality.
Portfoliois also important.
Currency pairs, time frames, and types, of course,
Developers should also diversify.
Because every EA developer has a tendency in their logic.
And once the EA selection is decided,
Risk managementis essential.
Backtest's
Maximum drawdown + required marginis the minimum starting capital needed,
From there, how much of a maximum risk you can tolerate determines
the lot size relative to funds.
And thenMentalityis next.
Make the correct interpretation of backtests,
compare with forward tests,
build a portfolio,
and once you decide your risk tolerance,
don't waver.
If you constantly change strategies,
you won't know what was good or bad,
and you won't be able to apply it next time.
Also,
Even a single excellent EA, if it encounters drawdown,
the recovery period is one year.
This is because
the recovery factor being tenfold over ten years
is a standard for excellent EAs,
achieving ten times the maximum drawdown in net profit over ten years.
In other words, in one year it would be the same as the maximum drawdown in net profit.
Ideally, decisions like this should be made over that kind of period.
See you next time!
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[Reiwa Double-E A Listing]
https://www.gogojungle.co.jp/users/112481/products
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[Reiwa Double-E's Series Articles]
■EA Beginner Course
https://www.gogojungle.co.jp/finance/navi/series/1700
■No-So-Thought! GoGoJungle Issue Posing!
https://www.gogojungle.co.jp/finance/navi/series/1701
■Double-E FX Miscellaneous Talks
https://www.gogojungle.co.jp/finance/navi/series/610
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[Reiwa Double-E's Beliefs]
Develop EA using a straightforward method,
and gain the support of more people,
maintaining a long-lasting WIN-WIN relationship,
aiming to revitalize the EA market and improve literacy.
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