EA craftsman EA Course [009] About best-seller ranking
From a Different Perspective
In the third lecture, titled "How to Find a Great EA," we discussed whether long-term backtesting is performed, whether the logic is simple and easy to understand, and whether there is overfitting...In addition, from a slightly different perspective, I would like to examine indicators that may be useful or not useful for selecting an EA, over several installments starting from this chapter.
Unless you are someone who vigorously develops EAs yourself, you might either jump on an unknown free EA developed by someone you don’t know and run it with a sniffly attitude, blowing your assets, or...
Or you might compare various EAs on a portal site that specializes in EAs, examine them, pay fair compensation, and operate them cautiously...
I think it’s one of the two, but for the “craving-for-quickness” type, essentially nothing works well, so there is no value in explanations; in this series, I will discuss the latter case.
Indicators Considered in This Series
Portal sites dealing with EAs usually provide rankings like the following.
- Best sellers
- Return on investment
- Profit amount
- PF
- Risk-reward ratio
We will examine each one step by step.
So this time we’ll discuss the best-seller ranking.
Mass Appeal
If I were a buyer, I would ignore this ranking. For now, at least...I might wonder, “Why is it selling so much?”
I would research, but just because it’s selling doesn’t mean I would purchase it.
For those who have followed me for a long time, you may know that I never act merely because “everyone is doing it.”
Even if a supermarket, department store, or online shop says “Now selling well!” I don’t feel any attraction.
Rather, I might suspect, “Aren’t they really not selling well, and they’re just saying ‘It’s selling well!’ because there’s no other reason to promote?”
I think this is a matter of imagination as well, but if you’re selling something, would you promote with “Purchase rush! Hurry!” for something that would sell even if left alone?
They are rushing it, right? It will sell out even without pushing it, right? Why would you need to hurry? If you did that, you’d only cause more rush and stockouts.
Yes. In other words, it isn’t selling well. The act of creating a rush means it isn’t selling well.
If you truly have confidence in the product and it’s selling, you wouldn’t lower the price. If it’s selling well and you’re having trouble, you would actually raise the price to moderate demand.
Also, if you are a follower of mine, you might know the Mark Twain quote that “the majority is always wrong.” If the majority were right, everyone would be successful and rich, right?
That said, I’m not saying you should deliberately go against the crowd. Do your own research, think for yourself, and judge for yourself.
As a result, you may sometimes arrive at the same conclusion as everyone else, but there is a world of difference between that and acting without thinking.
So, the conclusion is.
The best-seller ranking is something to investigate in terms of why it is selling, but it’s not a reason to purchase—at least that would be the prudent stance.
Finally… while researching the traits of people who fail, I found the following image and thought it was accurate, so I’d like to share it.
■ Concept and Operating Policy of the EA I Developed
EA craftsman’s EA (Three Arrows) is here
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