11/3 たまにはChatGPTの力を借ります其の14
FX automated trading, the double-E of the EA developers of Reiwa reporting in style.
Occasionally I’ll borrow some of ChatGPT’s power (laughs).
It’s by no means that I’m running out of ideas,
I have a lot of notes and drafts,
and since compiling them is a hassle, I dumped it all here (laugh).
Please use good EAs – regardless of EA developers, diversify your portfolio to spread risk
This time,
I would like to talk about the importance of selecting good EAs and building a portfolio to distribute risk without depending on any single EA developer.
Many people may place emphasis on the reputation or track record of the developer when choosing EAs, but
please realize that that alone may not provide sufficient diversification of risk.
“The logic of EA developers has quirks”
The logic designed by EA developers tends to carry the developer’s quirks.
Even if different types of EAs are developed, entry timing, exit timing, and the technical indicators used often reflect the developer’s particular patterns.
As a developer myself, I try to experiment with diverse logics, but
I inevitably incorporate commonly used technical indicators and trading patterns, perhaps unconsciously.
As a result, even different EAs may enter or exit at similar timings under the same market conditions.
The risk of using mostly the same developer’s EAs
With this “quirk,”
if you build a portfolio mostly with EAs from the same developer, even if it looks like you’re using different EAs on the surface, you may incur losses at the same time when market conditions deteriorate.
Even with different EAs, they trade under the same market conditions, exposing you to the same risk.
For example,
when a market condition causes all EAs to be stopped out at once, it can severely damage the entire portfolio.
That’s because, although individual EAs seem to operate on different logics, they actually operate under similar conditions.
The importance of diversifying EA developers
Therefore, diversifying EA developers is an effective method for risk diversification.
Using EAs from different developers helps avoid developer-specific quirks and allows for a more balanced portfolio.
For example, combining an EA from Developer A with one from Developer B enables trades suited to different logics and market conditions, allowing risk to be diversified.
This reduces the risk of a large loss in a single market environment.
What I noticed by looking at other developers’ logics
As an EA developer, I pay attention not only to the EAs I develop but also to the logics of other developers’ EAs.
By examining each developer’s approaches and methods, I understand which EAs perform well under which market conditions, and which EAs are exposed to similar risks.
One realization among these is that diversifying EA developers can greatly reduce the portfolio’s overall risk.
This may be less noticed, but it is a very important concept in EA operation.
Tips for building a portfolio
When building a portfolio with EAs, be mindful to incorporate EAs from different developers.
This helps avoid developer-specific quirks and risks, enabling more balanced operation.
This should lead to long-term profit stability.
Also, it’s important not only to choose different developers but to combine different logics and strategies.
For example, generally combining a trend-following EA with one strong in range markets, or pairing short-term scalping with long-term position holding, increases the likelihood that at least one will perform under various market states.
Summary
Understand that the logic of EAs has quirks, so using only EAs from the same developer is risky.
By incorporating EAs from different developers, you can diversify risk and achieve more stable operation.
This point may be less obvious, but it is a very important perspective for effective EA operation.
Please adopt this mindset, review your portfolio, and implement thorough risk management.
Well then, please continue to have a good trading life!
See you!
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【Reiwa’s Double-E EA Listing】
https://www.gogojungle.co.jp/users/112481/products
https://real-trade.tech/accounts/73791?via=users_realtrade
https://www.gogojungle.co.jp/finance/navi/articles/67162
【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】
