To prevent unnecessary points lost - AI automated trading to counter human error
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■ The Mindset to Prevent Deficits
“Professionals win points; amateurs lose points due to mistakes.”
Quotation: From Charles Ellis's The Coffee-Bean Players? Actually The Loser’s Game
This is a summary expressed from a certain tennis study, representing the results of statistical analysis.
In this summary, it can be interpreted that professionals are able to win points because they hardly make mistakes, on a foundation of minimizing errors.
The same applies to automated trading.
You often see beginner-targeted product copy focusing on words like “win,” “can win,” or “winning rate.”
However, that approach is utterly nonsensical.
Even if you obtain winning elements while the losing elements are not resolved, it is obvious that in the long run, losses will drag you down.
Even with the same EA, performance changes if the operator changes.
How to prevent loss due to mistakes. How to eliminate human error.
These are also important factors for maintaining long-term performance.
■ Human-Error Elements
- EA setup mistakes
- Lot size mistakes
- Misoperations due to magic number duplication, etc.
- Inappropriate spread settings
- Other parameter mistakes
- Overlooking state changes
- Overlooking abnormal trades
- Missed executions causing opportunity loss
For example, as listed above.
These cannot be completely prevented, but their occurrence can be mitigated.
■ Prevention Measures
Our EA has been addressing these measures in 2024.
A certain user set a magic number to be duplicated, causing losses with our EA.
From that painful moment, the desire to minimize human-error losses that do not appear in backtests or forward graphs grew stronger.
Below is the setup screen of the EA that implements those measures.
We visualize the state as much as possible.
1. EA setup mistake:
Drag and drop onto any chart to automatically set the appropriate currency pair and time frame.
2. Lot size mistake:
Because text overlapped on the left side, comments are displayed larger and colored on the upper right. Display of compound-lot and risk also shown.
3. Misoperation due to magic-number duplication:
An alert triggers when magic-number duplication is set.
4. Inappropriate spread setting:
Internal auto-spread that is automatically measured and calculated can be selected.
5. Other parameter mistakes:
Keep parameters in Japanese, minimize them, and display settings on the top right of the chart.
6. Overlooking state changes:
States are easier to notice when the face marks are silhouettes that appear the same, so we display them on the chart in color with Japanese text, and when communication errors occur the screen darkens.
7. Overlooking abnormal trades:
To easily see performance on the chart, we show trade lines and Pips on the chart, and the right-side comment field displays ProfitPips and PF. Negative values in red.
8. Order execution capability:
While ensuring communication speed is good, as a measure on the EA side, we code to internally increase order execution capability (in-house comparison).
This alone does not completely cover all measures yet.
There are many parts that cannot be fully addressed by the EA alone.
Going forward as well, we will continue to develop EAs with human-error mitigation to prevent accidents.
■ Introducing Measures EA [Advertisement]
We introduce the EA listings that implement the above measures.
For details, please refer to the product page displayed when you click the EA name.
At first, start with these four item numbers.
In the future as well, we expect to improve while incorporating user feedback.
We appreciate your understanding and forgiveness when updating.