6/3 (Mon) Beginners in EA, let's start with Anomaly EA

This is the Reiwa-era double-EA from EA developers.

In a previous article,

“EA beginners might want to start with an anomaly EA.”

that's what I talked about.

It may be repetitive, but

including a recap

I plan to write more about that in detail.

If I put the conclusion in bullet form,

・The logic inside is understandable, so it’s easy to use

・Since entry and exit are determined at specific times, it’s easy to understand and handle

・When the spreads are wide in the morning, it doesn’t enter, so reproducibility tends to be high

・Because it trades based on actual domestic demand, its edge tends to be stronger

・An anomaly EA alone can provide a portfolio effect

That is the gist.

First of all,

If EA beginners run an EA whose logic is not understood,

they won’t know when to enter or exit,

which can cause anxiety.

They might even feel restless during work.

In such circumstances, a anomaly EA

is an EA that “enters and exits at the scheduled times,”

so it is very easy to understand.

※However, since it does not enter using technical edge and instead enters at specific times, it is very rare to enter at the highs and lows, and there will often be unrealized losses, so please be aware of that in advance.

Also,

for an EA that enters or exits in the morning,

since that is a time when spreads widen,

there are times when you hold positions with unfavorable spreads.

In such a situation, anomaly EAs that enter and exit at scheduled times

allow you to always check what time you are trading,

and avoid trading during times when spreads widen

so it’s best to choose an anomaly EA.

In that case,

you need to check the spread settings in the published backtest,

since backtest reproducibility tends to be higher with anomaly EAs,

which is one of the advantages of anomaly EAs.

And,

price movements are not all driven by technicals;

actual money flows by exporters and importers also influence movements,

in other words, actual demand is one of the factors behind price moves.

The timing of those moves follows patterns,

for example on Gotō day,

money flows occur at specific dates and times,

and anomaly EAs generate profits from those patterns,

so an EA that captures “real, inevitable money inflows and outflows” is rational and tends to have an edge.

Also,

even among the same Gotō-day anomaly EAs,

the entry and exit times can differ.

There are cases like entry today or entry the day before,

and there are various possibilities.

If the entry times differ,

they can be influenced by other factors that occur before entry,

and the results are rarely the same,

for example, the day-of-entry EA may lose

while the previous-day-entry EA wins,

so even among the same Gotō-day anomaly EAs, results can vary.

Even if you build a portfolio with anomaly EAs only,

you can expect a portfolio effect.

From these points,

I think it’s good for EA beginners to start with anomaly EAs first.

That’s my suggestion.

See you!