1/24★ Occasionally I’ll borrow ChatGPT’s power, part 4

 FX Automated Trading, EA developerReiwa's Double-E.

This series has been written with the aim of posting every day since last year.

It’s probably been almost a year since it started!

If you read what I have written so far,

I believe you will come closer to better EA operation.

And, since I’d like to take a short break,

I will continue posting with the help of ChatGPT.

Occasionally, I will post irregularly as I did before.

The “Steady Gains and Sudden Losses” Problem in Scalping and Salarymen

Among FX, scalping methods are based on “gradually earning money.”

Scalping is a trading method that accumulates small profits in a short period,

and at first glance resembles a steady way for a salaried person to increase savings.

However, scalping comes with unavoidable risks,

and that is the “Steady Gains and Sudden Losses” “loss.”

The Pain of “Steady Gains and Sudden Losses”

For a diligent salaryman who has saved steadily through hard work,

the sudden loss of accumulated effort is extremely stressful.

For example, as a salaryman,

it would feel like being suddenly demoted or reassigned to a distant branch despite steady work.

There are moments when past efforts feel wasted due to an uncontrollable “sudden event.”

This situation is very similar to the scalping “drama” of a big loss.

When using an EA (automatic trading program),

it becomes difficult to control entries and exits with personal judgment,

and as a result, large losses can occur.

At such times, a trader may feel anger similarly to a salaryman facing demotion or transfer.

Scalping must consider risk when using it

However, the key point to understand here is that scalping is a method that assumes the risk of “Steady Gains and Sudden Losses.”

The important thing is not to be trapped by temporary “drama,” but to aim for long-term profitability.

Scalping focuses on short-term trades, but is designed as a strategy to achieve overall positive gains.

In life too, trust and reputation built over many years can crumble because of a single mistake.

This is a common topic in the news, but Scalping likewise has unavoidable occasional large losses.

However, that does not ruin all of life.

The Relationship Between Scalping and Automated Trading

When using FX automated trading, especially scalping EAs,

the system automatically sets stop-losses based on past data to prevent large losses.

Of course, sometimes a large loss called a “drama” occurs, but

in the long run, it is often kept as a loss that can be laughed about within overall profits.

In other words, it is important to understand scalping’s nature and pursue long-term profits.

Even when a large loss occurs, instead of treating it as a “criminal,”

accepting it as part of overall growth and profits is the mindset for success in FX trading.

Summary: View Scalping from a Long-Term Perspective

Scalping is a method of steadily building profits, but the risk of a sudden spike remains unavoidable.

That is like a salaryman feeling that his efforts were wasted due to a sudden demotion or transfer.

However, in FX automated trading, you are expected to operate with an understanding of such risks in advance.

There can be large losses in the short term, but how you position them within the overall picture is important.

By staying calm and trading with a long-term perspective, you can increase your assets, which is the path to success in FX automated trading.

For everyone using scalping EAs,

let’s continue to aim for long-term profits without fearing occasional “drama” as we steadily build up.

That’s all for now!

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【Reiwa's Double-Ea Product List】

https://www.gogojungle.co.jp/users/112481/products

Specifically categorized Reiwa’s Double-Ei EA entries

https://www.gogojungle.co.jp/finance/navi/articles/67162

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【Reiwa's Double-Ei Serial 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-Ei's Belief】