12/12★There is no boundary in environmental recognition
FX Auto Trading, the EA developerReiwa’s Double-E.
I am an EA developer and an EA trader,
and I know someone who teaches discretionary trading.
And,
there is something called “common questions.”
“Where does the trend start, and where does the range begin?”
In short, if you look at the chart afterward,
you can roughly tell that a trend market started around here,
and that a range market started roughly around here,
but exactly where does it start?
If there are any indicators, please tell me.
I’ve heard similar questions quite a lot.
If a sharp-tongued person were to answer,
they would probably say, “I don’t know, if I knew, I wouldn’t have any trouble!”
I think that would be the gist.
In other words,
each person uses their own method of analysis,
when they think a trend is starting, they go for the follow-the-trend approach,
when they think a range is starting, they go for counter-trend,
and if they think they’ve made a mistake, they cut losses properly,
and based on those trades, the results come out.
That’s likely the kind of answer it would be.
Beginners tend to want to set black-and-white rules,
whereas successful discretionary traders understand clearly where the trend and range begin,
and that’s how they think.
If you are an EA developer with a background in discretionary trading,
you translate the trading methods honed during the discretionary trading era
into the EA logic as you develop,
but discretionary trading methods carry various degrees of ambiguity,
such as, “I enter under these chart patterns,” and “I exit under these chart patterns.”
When you transfer that into an EA, since it is a program,
you need to decide how many candles determine actions,
how many technical parameters to set,
and so on, you need clarity,
which is derived from long-term backtest data and optimization,
to set parameters that tend to show a rising equity curve over the long term,
so that for each trade you’re not just identifying a trend or a range in isolation,
but setting parameters that are valid over the long term,
and when you look at individual trades, you’ll see they were entered and exited roughly at similar points,
and that’s how it tends to unfold.
So, when you later look at the chart, you’ll notice that a trend existed from here, or that an arrangement could have been made from here,
you’ll notice those things, but the EA’s entries and exits will generally look appropriate,
that’s how it tends to be.
Therefore, when you see arrows from signal tools,
you might think, “The winning trades clearly enter here and exit here,”
but in reality, the win rate is not 100%,
and I think that mindset should be abandoned.
Otherwise, you’ll enter and exit at many points over a long period,
and even an EA that would be profitable long-term may cause you to panic,
you might override it with handlings,
or even stop it from running,
but if you keep using it, it would likely be profitable in the long run…
I think there’s a very high possibility of that outcome.
That kind of mindset is extremely important.
Well then!
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【Reiwa’s Double-E EA Listing】
https://www.gogojungle.co.jp/users/112481/products
Specifically categorized Reiwa’s Double-E EA genres
https://www.gogojungle.co.jp/finance/navi/articles/67162
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【Reiwa’s Double-E Series Articles】
■EA Beginner’s Course
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 Belief】
Develop EAs by proper methods,
and gain the support of more people,
maintain a long-term WIN-WIN relationship,
and aim to revitalize the EA market and raise literacy.
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