Translate the below HTML to English, keep format html, the result is not in markdown code and not break line, convert standard decode before translate: 11/1 たまにはChatGPTの力を借ります其の12 Translation: 11/1 Occasionally I borrow the power of ChatGPT Part 12
FX automated trading, the double-E who is an EA developer in Reiwa.
Sometimes I’ll also borrow the power of ChatGPT (laugh).
It’s by no means that I’m running out of ideas,
I have many notes and drafts,
and since organizing them is tedious, I dumped them all in (laugh).
To determine why EA performance differs – what stays the same and what changes
This time, I’d like to discuss diagnosing the causes when EA performance differs.
For example, even if you run the same EA on both Account A and Account B, the results might differ.
In such cases, you might think the EA itself is the cause.
However, the EA (the program) does not change during operations.
Therefore, if you are using the same EA, differences in results mean there is no cause in the EA itself.
It is important to identify what is the same and what is different
When comparing things, especially when comparing EA performance, it is extremely important to clearly identify the parts that are the same and the parts that are different.
Even if you think you are operating under the same conditions, unseen differences can influence the results.
For example, if the performances of Account A and Account B differ, consider checking the following change points.
1. Differences in trading environment
Spread
Spreads (the difference between bid and ask) can differ by broker or account.
When spreads widen, especially in short-term trades, they can have a large impact on performance.
Trading fees
If trading fees differ between Account A and Account B, the gap will reflect in final profits.
Over a long period of trading, this difference becomes non-negligible.
Order execution quality
If the speed and accuracy of order execution (execution quality) differ, timing during volatile market moves can vary slightly, leading to differences in results.
2. Market conditions
Even with the same EA, different market conditions at the start of operations for Account A and Account B can lead to different experiences.
For example, when you started using the EA on Account A, the market might have been stable, whereas on Account B it could have been in a highly volatile phase.
Such differences in market environment naturally affect performance.
3. Server differences
Server response speed
If the trading server’s response speed differs, especially in scalping or other short-term trades, the impact can be pronounced.
If the VPS (virtual private server) performance, location, or distance to the trading server differs between Account A and Account B, subtle timing differences in trades can occur.
Server stoppages or delays
Temporary server stoppages or delays can prevent trades from being executed or delay timing, affecting the results.
4. Differences in capital allocation
If the initial investment or lot sizes differ between Account A and Account B, even with the same EA, performance will differ.
For example, with less capital, you might not withstand drawdowns and losses get realized, while with more capital you have leeway to wait for reversals and recover profits.
5. Differences in risk management
Even with the same EA, different risk management settings can cause large performance differences.
For example, stop-loss settings, position sizes, or techniques like grid or martingale, and their risk management settings can influence outcomes.
Fundamental principle for diagnosing causes
Thus, carefully identifying what is the same and what is different, and pursuing the causes accordingly is essential to explain performance differences.
If you skip this basic process, you may go in the wrong direction for diagnosing causes, making it impossible to solve the mystery.
Summary: Understanding EA performance differences correctly
To understand why EA performance differs, carefully compare the same parts and the different parts, focusing on the changes to pursue the cause.
Since the EA itself does not change, the differences come from external conditions.
Trading environment and server conditions
Market conditions
Capital and risk management differences
Examining these elements one by one and clarifying where the differences lie will lead to problem-solving.
By accurately identifying the causes, you can apply them to improve future trades and EA operations.
Well then, please continue to have a good trading life!
See you!
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【Reiwa’s Double-E Official Listing of EAs】
https://www.gogojungle.co.jp/users/112481/products
Real account performance of the X USD/JPY EA
https://real-trade.tech/accounts/73791?via=users_realtrade
Specifically categorized Reiwa’s Double-E EA by genre
https://www.gogojungle.co.jp/finance/navi/articles/67162
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【Reiwa’s Double-E Serialized Articles】
https://www.gogojungle.co.jp/finance/navi/series/1700
https://www.gogojungle.co.jp/finance/navi/articles/64703
https://www.gogojungle.co.jp/finance/navi/articles/65978
https://www.gogojungle.co.jp/finance/navi/articles/64738
https://www.gogojungle.co.jp/finance/navi/articles/65619
https://www.gogojungle.co.jp/finance/navi/series/1714
https://www.gogojungle.co.jp/finance/navi/series/1701
https://www.gogojungle.co.jp/finance/navi/articles/64723
https://www.gogojungle.co.jp/finance/navi/articles/65010
https://www.gogojungle.co.jp/finance/navi/series/610
【Reiwa’s Double-E’s Beliefs】
