4/19 (Fri) The scary point about averaging down EA from 1 position EA

EA developer Reiwa’s Double-E is.

I will explain the matter in the title.

1-pose EA has one position.

On the other hand, a martingale EA will hold multiple positions because it martingales.

And when there is unrealized profit, the martingale EA closes multiple positions at the same time.

There,

what happens if there are differences between accounts?

Generally speaking, EAs

do not rewrite the in-running program

nor do the parameters change.

Therefore, since the distribution rate differs by account,

the EA’s判定 (judgment) will naturally differ.

This is one of the causes of disparities,

differences between accounts are not avoidable.

For example,

when there is a scenario where an account that generated a settlement decision and an account that did not.

In the account where no settlement decision was made,

if it ended up losing in what is called a “missed take-profit” condition,

the effect is amplified for those holding multiple positions.

In the case of a non-martingale technical-closed multiple-position EA,

since multiple positions are rarely closed simultaneously,

the impact is still greater for the martingale EA.

This is one of the scary aspects of martingale EA compared to 1-position EA.

When looking at backtests and forward P/L graphs of martingale EA,

you may be tempted by the ecstatic sight of a straight, steadily rising chart and think,

“Maybe martingale EA alone is enough,”

but to avoid having only martingale EA,

it is better to diversify as one of many investment methods.

Well then.

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【Reiwa’s Double-EA Listing】

https://www.gogojungle.co.jp/users/112481/products

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【Reiwa’s Double-EA Serial Articles】

https://www.gogojungle.co.jp/finance/navi/series/1700

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【Reiwa’s Double-EA Beliefs】