The translated HTML content is: 2/2★Sometimes I borrow the power of ChatGPT, its12 - EA Beginner Course - Navi+ - GogoJungle | Auto Trading - Market Analysis

FX Auto Trading, the EA developerReiwa’s Double-Eis here.

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

Probably we have continued for almost a full year!

If you read what I have written so far,

I believe you will come closer to better EA management.

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 like in the past.

To identify why EA performance differs – what stays the same and what changes

This time, I would like to discuss the process of diagnosing the causes when an EA’s performance varies.

For example, even if you run the same EA on both Account A and Account B, the results may differ.

In such cases, you might think the EA itself is to blame.

However, an EA (the program) does not change during operation.

Therefore, if you are using the same EA, differences in results imply that the EA itself is not the cause.

It is important to determine what is the same and what is different

When comparing differences, especially in EA performance, clearly identifying the same parts and the different parts is extremely important.

Even if you think you are operating under the same conditions, unseen differences can affect results.

For example, when Account A and Account B have different results, check the following change points:

1.Differences in trading environment

Spread

Spreads (the difference between bid and ask) may vary by broker or trading account.

If the spread widens, it can have a significant impact on performance, especially for short-term trades.

Trading fees

If the trading fees differ between Account A and Account B, that difference will reflect in the final profit.

Especially over a long period, this difference becomes non-negligible.

Slippage

If the speed and accuracy of order execution (slippage) differ, especially during sudden market moves, the timing of trades may differ slightly, leading to performance differences.

2.Market conditions

Even with the same EA, facing different market conditions may occur if the timings of starting the operation on Account A and Account B differ.

For example, when you started EA on Account A, the market might have been stable, while on Account B it was volatile.

Such differences in market environment naturally affect results.

3.Server differences

Server response speed

If the trading server’s response speed differs, especially for scalping and other short-term trades, the impact becomes noticeable.

If the VPS (virtual private server) performance, location, or distance to the trading server differs between Account A and Account B, small timing differences in trades may arise.

Server downtime or latency

If the server experiences temporary stoppages or latency, trades may not occur or timing may be delayed, affecting the results.

4.Differences in capital

If the initial investment amount or lot size differs between Account A and Account B, even using the same EA will yield different performance.

For example, with less capital you may not withstand drawdowns and losses may be realized, whereas with more capital you have room to wait for a market reversal and recover profits.

5.Differences in risk management

Even with the same EA, different risk management settings can cause large performance differences.

For instance, stop-loss settings, position sizing, or the use of methods like averaging down or martingale can affect results depending on these risk management settings.

Fundamental principle of root cause analysis

Thus, carefully identifying what is the same and what is different, and pursuing the cause, is essential to explain performance differences.

If you do not follow this basic process, you may misdirect your investigation and fail to solve the mystery.

Summary: Understanding EA performance differences correctly

To understand why an EA’s performance differs, carefully compare the identical parts and the different parts, focusing on the changes to identify the cause.

Because the EA itself does not change, the differences come from external factors.

Trading environment or server status

Market conditions

Capital and risk management differences

By examining these elements one by one and clarifying where the differences lie, you will be able to solve the problem.

Accurately understanding the cause will help improve future trading and EA operations.

With that, please continue to enjoy good trading life!

See you!

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[Reiwa’s Double-EA Product List]

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

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