2/7★ Sometimes I borrow the power of ChatGPT, this is 17
FX Automated Trading, the EA developerReiwa’s Double-E.
This series has been written with the goal of posting every day since last year.
Probably we’ve continued for almost a year now!
If you read what I’ve written so far,
I’m confident you’ll move closer to better EA operation.
And since I’d like to take a short break,
I’d like to continue posting with the help of ChatGPT.
Occasionally I will post irregularly, as I have in the past.
Do EAs complement human discretionary trading? – The true strength of EAs
This time, I’d like to talk about EAs that play a role in complementing human discretionary trading.
Some people who trade discretionary may wonder what role an EA (automatic trading system) plays.
Discretionary trading and EA operation are distinct approaches, but in fact EA complements discretionary trading and supports efficient operation.
Characteristics and challenges of discretionary trading
In discretionary trading, techniques such as trend following, buying on dips, and selling on rallies are often used.
I myself aim to follow the trend direction to widen profits, valuing large price ranges even if win rate drops.
In trading, when the chart moves in a way that differs from the anticipated pattern, it is common to exit early to minimize losses.
In this way, it can turn into short-term trading like scalping.
However, discretionary trading has a few challenges.
Emotional judgments:
Emotions can influence trading midway, leading to entries or exits not in line with the plan.
Unable to fully adapt to market changes:
Human judgment cannot adapt to every market situation. Sudden market movements may cause you to miss profits.
Time constraints:
Being busy with work or housework can cause you to miss opportunities while watching the charts.
The true strength of EAs – trading at times humans cannot
The EA I developed is based on discretionary trading, but does not have to rely on the same method.
EAs are often developed to complement the quirks and limitations of discretionary trading, and there are times when they enter or exit at moments humans can’t easily do.
For example, at times when discretionary trading tends to avoid counter-trend timing, the EA automatically enters and profits.
This is because the EA objectively assesses the market and automatically trades based on its logic, even at times humans would hesitate due to fear or anxiety.
Thus, there are trades that only an EA can perform. This is the true strength of an EA.
Advantages of EAs validated by long-term data
Additionally, a major advantage of EAs is that their logic has been tested over a long historical period.
Human discretionary trading is often not deeply validated with past data, so it is unclear whether its edge holds as markets change.
On the other hand, EAs are verified through backtesting against all sorts of past markets before use.
This allows EAs to adapt to various market environments over the long term and be designed to exhibit reasonable edge in any market.
For example, even timing that discretionary traders tend to miss, the EA will automatically enter and catch the market movement.
Looking at the long term, it is possible to achieve a net positive result.
The role of EA in supporting discretionary trading
Discretionary trading has drawbacks such as emotional judgments and inability to respond to sudden market changes.
However, EAs mitigate these drawbacks by automatically controlling profits and losses. In other words,
they play a role in complementing human discretionary trading.
EAs can trade automatically even when you’re too busy to monitor charts, so time constraints become less of a problem.
Even people who are busy with work or household duties can have EAs operate autonomously, ensuring you don’t miss opportunities while continuing to trade.
The value of running EAs
If you rely on discretionary trading, it’s worth also trying FX auto trading (EA).
EAs enable trades at timing that is difficult for discretionary traders, remove emotional judgments, and enable stable operation.
Thus, a two-pronged approach of discretionary trading and automated trading can be realized, allowing for risk diversification and improved profitability.
EAs are highly effective for busy people or those struggling with discretionary trading. If you’re interested in FX auto trading, consider EA operation right away.
Ignoring it could be a huge missed opportunity.
Now, please continue to have a great trading life!
See you!
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MT4 EA (Expert Advisor), Indicator Installation Procedures
https://www.gogojungle.co.jp/post/1/8212
※ Gogojan video version ※
At first, you may not understand everything at once, and will surely stumble.
I also stumbled many times at first, so just take it easy and you’ll be fine!
If you have questions, there is a contact form, so please use it!
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https://www.gogojungle.co.jp/inquiry
【How to Choose an EA】
Now that you’re ready to operate an EA,
you might think, “I don’t know which EA will win… I don’t want to lose…”.
So, Reiwa’s Double-E makes it possible to determine in part the quality through backtests,
and we’ve serialized the following articles.
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■ How to find winning EA from backtests
https://www.gogojungle.co.jp/finance/navi/series/1714
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but backtesting provides the foundation for that backing.
Backtesting periods are usually longer than forward testing periods, and
whether you win during forward testing can be estimated to some extent by mastering backtesting evaluation methods.
【How should EA risk management be done!?】
Then, no matter how excellent an EA is,
if you neglect risk management, FX will fail.
How should risk management be done?
The answer is in the following article.
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■ “How to calculate EA risk management”
https://www.gogojungle.co.jp/finance/navi/articles/64703
【EA operation mindset is also important】
And, to sustain EA operation for the long term, the "EA operation mindset" is also important.
For articles on these,
12/30★ Year-end and New Year SP!! EA Full Explanation Course Part 3
https://www.gogojungle.co.jp/finance/navi/articles/80551
8/12【Special Summer Holiday企画！】Now you too can become an EA Master! “EA Operation Mindset Improvement”
https://www.gogojungle.co.jp/finance/navi/articles/72829
8/17【Special Summer Holiday企画！】Now you too can become an EA Master! “Notes during EA operation”
https://www.gogojungle.co.jp/finance/navi/articles/73797
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this is substantial and very important content,
so even if you can’t understand it immediately, be sure to review it!
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【Reiwa’s Double-E EA Listing】
https://www.gogojungle.co.jp/users/112481/products
Specifically categorized EA under Reiwa’s Double-E
https://www.gogojungle.co.jp/finance/navi/articles/67162
（Portfolio diversification by genre is essential）
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【Reiwa’s Double-E Serialized Articles】
■ EA Beginner’s Course
https://www.gogojungle.co.jp/finance/navi/series/1700
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“About calculating EA risk management”
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
Where to check first when you don’t understand something about EA
https://www.gogojungle.co.jp/finance/navi/articles/65619
■ How to find winning EA from backtests
https://www.gogojungle.co.jp/finance/navi/series/1714
■ No sugarcoating! Gogojan raises the issue!
https://www.gogojungle.co.jp/finance/navi/series/1701
https://www.gogojungle.co.jp/finance/navi/articles/64723
■ Reiwa’s Double-E “Pushes Buying on Dips and Selling on Rallies” – public release!!
https://www.gogojungle.co.jp/finance/navi/articles/65010
https://www.gogojungle.co.jp/finance/navi/series/610
【Reiwa’s Double-E’s Beliefs】
Develop EA with a straightforward method,
gain more supporters,
and maintain a long-lasting WIN-WIN relationship,
to revitalize the EA market and raise literacy.
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