Translation (keeping HTML format, single-line output, with standard decoding applied): 1/26★Sometimes I borrow the power of ChatGPT, part 6 - EA Beginner Course - Navi+ - GogoJungle | Auto Trading - Market Analysis

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

This series has been written to post every day since last year.

Probably I have continued for almost a full year now!

If you read what I have written so far,

you will surely approach a better EA operation, I claim with confidence.

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

I plan to continue posting with the help of ChatGPT.

Occasionally, I will post irregularly, like my past posts.

Nanpin EA too — “There’s a use for everything” – The importance of risk management

For those who have just started FX or are interested in automated trading,

some may have experienced large losses using nanpin EAs.

Many may think, “I don’t want to use Nanpin EA anymore…”

In fact, Nanpin EA is a method that piles up small profits steadily, and at first glance it looks very attractive.

There are times when it reliably generates profits daily, making you feel very assured.

However, when the market changes abruptly, that charm can collapse in an instant, and your account funds can be wiped out in no time.

Nanpin EA risks – “Boom” during rapid market changes

Nanpin EA adopts a system of not stopping losses, holding multiple positions, and closing only when overall becomes positive.

This strategy aims to end in profit, even if it temporarily carries unrealized losses.

Therefore, in normal market conditions, it may operate without issue.

Backtesting can show a profit chart that rises steadily to the right, looking very attractive.

When every trade succeeds and profits accumulate in the account, you might feel even more reassured.

However, Nanpin EA has a major risk that is large relative to its net profit: a maximum drawdown (the largest drop in funds).

When the market moves sharply, unrealized losses can continue to grow, eventually forcing a loss to be realized all at once,

and the profits accumulated so far can vanish in an instant.

This is one of the reasons many traders feel uneasy about Nanpin EA.

Yet Nanpin EA is still “Something you can use”

So, is Nanpin EA too risky to use?

The answer is not necessarily. The key is to use it wisely — “There’s a use for everything.”

To minimize Nanpin EA risks, proper risk management is essential.

Here are some points to consider.

1. Adjusting lot size

With Nanpin EA, positions are split into multiple lots, so managing each position’s size properly is important.

Trading with excessively large lots increases the risk of enormous unrealized losses during a sudden move.

Starting with small lots and gradually increasing or decreasing can help control risk while pursuing profits.

2. Assessing market conditions

Don’t run Nanpin EA unconditionally; operate it after assessing market conditions.

Especially when there are important economic indicators with potential for rapid market changes or high geopolitical risks, it is recommended to temporarily stop Nanpin EA.

Understanding periods with high volatility in advance can greatly reduce loss risk.

Nanpin EA is always paired with unrealized losses, so capital management is extremely important.

Calculate the maximum drawdown and ensure you have enough excess funds to withstand that risk.

This is an effective risk-hedging strategy that helps you stay resilient even when the EA faces unfavorable conditions.

The Future of Nanpin EA – Aiming for long-term profitability

Nanpin EA is a risky method, but if used properly, it can be profitable in the long term.

To avoid losses, understand market fluctuations and your own risk tolerance, and adjust the system appropriately.

Nanpin EA can be a powerful tool for accumulating profits while controlling risk, depending on how you use it.

By practicing proper risk management and capital management and continually monitoring the market carefully, Nanpin EA can become a reliable partner for traders.

Summary

Nanpin EA carries risk, but

by understanding it and enforcing risk management, it is quite possible to achieve long-term profits.

While aiming for steady, small gains, do not neglect measures against market rapid changes, and proceed cautiously.

Nanpin EA is also “Something you can use.”

Master its proper use and maximize profits.

See you!

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【List of Reiwa's Double-EA Products for Sale】

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

Specifically, categorizing Reiwa’s Double-EA by genre

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