EA Craftsman's EA Course 【011】 About the Revenue Amount Ranking of FX Automated Trading

Grab the Nominal Profit

This ranking... it is the metric with the highest attention and popularity, but I completely do not understand the reason for that.

The reason is that this metric can be manipulated simply by tweaking the lot size.


For example, suppose there is an EA earning 100 million yen per year. If you look at the Profit Margin (growth rate), it’s 1%... meaning the required margin is 10 billion yen.

Do you want an EA like this?

Conversely, suppose there is an EA that only earns 100,000 yen per year. Its needed margin was 1 million yen, which obviously wouldn’t rank high on the earnings chart. That is a 10% profit rate.

Which do you think is more exceptional, the 100 million yen EA or this one?

Face Reality

Also, what kind of impression do you get when you hear about 10% annual interest? Do you think it's small?

If you deposited 1 million yen, you’d earn 100,000 yen in interest... that yield would be unimaginable for a fixed deposit at a domestic bank.


Recently, there was a big stir when the Bank of Japan's current account balance policy rate increased, but it’s still 0.25%.

Naturally, interest from ordinary banks would be even smaller, so you can understand how remarkable 10% annual interest is in this era. The yield on the U.S. 10-year Treasury is around 4% as of the time I’m writing this article. A 10% return is a yield you wouldn’t often see in investment funds.

By the way, 10% annual interest doubles in 10 years with compounding.

Do you view this as high or low? It’s a test of everyone’s common sense.

■ My EA Concept and Operating Policy

EA Artisan’s EA (Three Arrows) is here