The translation of the provided HTML is: 1/27★Sometimes I borrow the power of ChatGPT, part 7

 FX automated trading, EA developersReiwa’s Double-Eyeis.

Since last year I have been writing this series aiming for a daily post.

I think I’ve been able to continue for almost a year now!

If you read what I’ve written so far,

I’m confident you’ll come a lot closer to better EA operation.

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

I will continue posting by borrowing the power of ChatGPT.

From time to time I will post irregularly as I did before.

Nanpin EA is "how you use things" – the importance of risk management

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

some may have experienced large losses using a nanpin EA.

There are probably many who feel, “I don’t want to use a Nanpin EA anymore…”.

In reality, Nanpin EA is a method that steadily stacks small profits, and at first glance looks very attractive.

When it pays profits almost daily, it can be very reassuring.

However, when the market changes abruptly, that charm can collapse in an instant, and account funds can melt away in no time.

Nanpin EA and single position compound interest – a new idea to reduce bankruptcy risk

This time, I’d like to talk about an interesting idea from a community member.

It is a new approach that combines “nanpin’s simple interest” and “single-position compound interest.”

This concept is very interesting in that it aims to reduce Nanpin EA’s bankruptcy risk while achieving compound interest effects.

Nanpin EA problems – bankruptcy risk

First, for those unfamiliar with Nanpin EA,

Nanpin is a technique that adds positions when the price goes against you, lowering the average entry price and making it easier to profit when it reverses.

This strategy is very effective in ranging markets where trends do not last long, but in situations where a unidirectional trend continues for a long time, unrealized losses can swell and eventually cause large losses.

This is known as the “bankruptcy risk” of Nanpin EA.

Reducing risk by combining single-position

Hence, a proposal from community members was to combine Nanpin EA with a single-position strategy.

Single-Position EA holds only one position at all times, so its risk is limited, and it does not perform position averaging like Nanpin.

By combining these two strategies, Nanpin EA’s bankruptcy risk might be mitigated.

Specifically, in markets where Nanpin would normally hold multiple positions with higher risk, the single-position EA can help limit risk.

For example, even if Nanpin EA holds an excessive number of positions, if the single-position system moves to supplement it, losses can be minimized while pursuing stable profits.

This is a very interesting approach as a strategy to avoid bankruptcy.

Combination of Nanpin EA and single-positon without martingale

Another intriguing idea is to mix a Martingale-free Nanpin into a single-position EA.

Martingale is a method that doubles bet size every time a loss occurs, but it is considered high risk for bankruptcy.

Here, the idea is to remove Martingale and incorporate the Nanpin trait of holding multiple positions into a single-position EA.

With this method, you can increase positions while controlling risk by not increasing lot sizes, thus

maintaining the stability of a single-position EA while aiming to maximize the profits of Nanpin that holds multiple positions.

By moderately diversifying risk, it may be possible to accumulate profits over the long term.

Compound interest effect of single-position EA – accelerating asset growth

Additionally, leveraging the characteristics of single-position EA to operate with compound interest is part of this idea.

Single-position EA requires less margin than Nanpin EA and can set appropriate lot sizes, making steady profits easier, and using those profits in a compound manner to accelerate asset growth is also interesting.

Compound interest refers to reinvesting profits into the next trade, causing assets to grow like a snowball.

Nanpin EA can generate profits at a relatively fast pace when the market is stable, but

combining single-position EA with compound interest increases the possibility of growing assets over the long term while reducing risk.

Summary: New strategy by combining Nanpin EA and Single-Position

Nanpin EA carries bankruptcy risk, but it is also a powerful method for pursuing profits.

However, to mitigate this risk and secure long-term profits,

combining with single-position EA and compound interest is very interesting.

By combining Nanpin EA, Single-Position EA, and even martingale-less Nanpin strategies,

you can optimize risk and profit and grow assets over the long term, which is fascinating.

In this way, even high-risk strategies can open up new possibilities when combined with other strategies.

As the saying goes, “there is use in everything,”

by flexibly adopting various methods and balancing risk management with profit seeking, you may achieve success.

And now!

【Reiwa’s Double-Eye EA product list】

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

Specifically, categorizing Reiwa’s Double-Eye EAs by genre

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

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【Reiwa’s Double-Eye serialization articles】

■ EA Beginner Course

https://www.gogojungle.co.jp/finance/navi/series/1700

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About “How to calculate EA risk management”

https://www.gogojungle.co.jp/finance/navi/articles/64703

【Portfolio version】How to calculate EA risk management

https://www.gogojungle.co.jp/finance/navi/articles/65978

Easy tips to spot fraudulent products (in the case of EA)

https://www.gogojungle.co.jp/finance/navi/articles/64738

Where to check first when you don’t understand something about EA

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-Eye’s Philosophy】

Develop EA with proper methods,

gain the support of more people,

and maintain a long-term WIN-WIN relationship,

aim to revitalize the EA market and improve literacy.

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