5/22 (Wed) About the disadvantages of having a high number of trades
EA Developer's Reiwa Double-E is Daiblee-E.
This time
「About the drawbacks when the number of trades is high」
Everyone,
「If the number of trades is high, it seems you would make a lot of profit!!」 or,
「According to the law of large numbers, more trades are better」 etc.,
You might think there are only advantages, but
In reality, there are also disadvantages.
That is,
「You end up paying a lot in fees」
As a result.
In FX, for every trade you pay a fee in the form of
a spread.
In particular, with scalping,
you pay costs for every trade
and extract small profits of a few pips steadily.
On the other hand, with trend following,
even if win rate is low, you can sometimes score a big home-run in one shot
and earn explosive pips.
In accounts with narrow spreads,
scalping EAs are good, but
if spreads widen, you can even lose due to the spread.
Therefore,
Judging that more trades are better just by the number of trades is dangerous.
Always
Make it possible to view the backtest items from an overall perspective.
Well then!
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【Brand-new Reiwa Double-E A product list】
https://www.gogojungle.co.jp/users/112481/products
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【Reiwa no Double-E serialized articles】
■ EA Beginner's Course
https://www.gogojungle.co.jp/finance/navi/series/1700
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About calculating EA risk management
https://www.gogojungle.co.jp/finance/navi/articles/64703
A simple tip to spot fraudulent products (in the case of EAs)
https://www.gogojungle.co.jp/finance/navi/articles/64738
Where to check first when you don't understand something about EA
https://www.gogojungle.co.jp/finance/navi/articles/65619
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■ No-nonsense! GoGoJungle raises questions!
https://www.gogojungle.co.jp/finance/navi/series/1701
Where is the GoGoJungle inquiry form?
https://www.gogojungle.co.jp/finance/navi/articles/64723
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■ Double-E FX Chit-chat
https://www.gogojungle.co.jp/finance/navi/series/610
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【Reiwa no Double-E's Beliefs】
Develop EA with a principled approach and,
to be loved by more people,
and to maintain a long-lasting WIN-WIN relationship,
aim to revitalize the EA market and improve literacy.
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