2/12★Sometimes I borrow ChatGPT's power, number 22

 FX Automated Trading, an EA developerReiwa’s Double-E here.

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

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

If you read what I’ve written so far,

you’ll surely come closer to better EA operations, I believe.

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

I plan to continue posting by borrowing the power of ChatGPT.

Occasionally, I will post irregularly like before.

Misconceptions in EA operation – Why anomalies can still show performance differences?

Hello, I’m Reiwa’s Double-E, an EA developer.

Today I’d like to talk about questions and responses from customers, and important points in EA operation.

When you release an EA (automatic trading), inquiries from customers are inevitable.

In particular, when the EA underperforms in the short term or forward tests differ from actual trades, questions and complaints tend to cluster.

Frequently Asked Question – Forward tests vs. trade results differ?

First, there is a very common question: “The official forward test and trade results differ, why is that?”

In particular for technical EAs, trading timing can differ by broker, so results can differ due to differences in broker rates and spreads.

This is something that cannot be controlled.

On the other hand, anomaly-type EAs trade at fixed times, so performance differences are believed to be less likely.

Because trades occur at scheduled times, the trading timing should almost coincide no matter which broker is used.

Therefore, even beginners can understand entry and exit timings, which provides a sense of security.

Even anomaly-type EAs show performance differences… What’s the reason?

However, surprisingly, it has been found that even anomaly-type EAs have some people who win and some who lose.

This was a very shocking fact. Anomaly EAs trade at the same times, so theoretically there should be no performance gap. Why does this happen?

Possible causes that emerged include:

Differences in the start time of operation

For example, starting EA operations at different times can temporarily result in negative performance.

It’s possible that users complain about short-term losses.

Even though long-term operation is important, many users excessively worry about short-term losses.

Rough lot sizes being too large

Inadequate money management is another cause.

For example, setting a lot too large can deplete account funds quickly if losses occur.

Even if the manual describes money management, some users ignore it.

Lack of investment education – Low literacy in EA operation

From these problems, it becomes clear that investment education is still insufficient.

There is a common misconception that you can profit immediately with EAs, and risk and money management aren’t well understood.

Also, staff at sales destinations may not fully understand how EAs work and operate,

which may further confuse users.

Need to communicate the proper use of EAs

What I felt here is that we need to spread the proper use and operation of EAs more widely.

For beginners, a realistic explanation of “what EAs are” is required.

If you start thinking you’ll make easy profits, you may end up concluding incorrectly that “the EA is terrible and that’s why you lost” when things don’t go well.

Therefore, I feel it’s important to communicate even small details consistently.

In particular, we should emphasize risk management, the importance of capital management, and calm responses to short-term losses.

It may be necessary to explain things so carefully that you might think, “Do I really have to explain this much?!”

Summary

In EA operations, even anomaly-type EAs can show performance differences, which is a shocking fact.

This is likely related to the timing of operation start and money management issues.

From this, it becomes clear that improving investment literacy is urgent.

To operate EAs correctly and achieve long-term success, it’s important to have solid knowledge of risk management and capital management.

Going forward, I will continue to share information about EA operation with you all and promote proper literacy.

Please also share what you notice and learn in your daily operations with fellow traders!

With that, I wish you continued excellent trading life!

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【Summary of the Flow from Starting EA to Intermediate Level】

MT4 EA (Expert Advisor) and Indicator installation steps

https://www.gogojungle.co.jp/post/1/8212

※GoGoJungle Video Version※

Even at the start, you may not understand everything at once and you’ll stumble.

I also stumbled many times at first, so don’t rush—you’ll be fine!

If you don’t understand something, there is an “Inquiry Form” so use it!

https://www.gogojungle.co.jp/inquiry

【How to Select an EA】

Now that you’re ready to operate an EA,

you may think, “I don’t know which EA will win… I don’t want to lose…”

So Reiwa’s Double-E recommends that you can gauge reasonable quality to some extent with

“backtesting,” and has serialized the following articles.

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https://www.gogojungle.co.jp/finance/navi/series/1714

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backtesting underpins it.

Backward testing periods are usually longer than forward periods, and

whether you happened to win in forward is partly determined by testing methodology, which can be understood by mastering backtest evaluation.

【How to manage EA risk?!】

And no matter how excellent an EA seems,

FX can collapse if risk management is neglected.

So for EAs how should risk be managed?

This article answers that.

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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 operations long-term, the “EA Operation Mindset” is also important.

Regarding those articles,

12/30★ Year-end and New Year SP!! EA Thorough Course Part 3

https://www.gogojungle.co.jp/finance/navi/articles/80551

8/12 [Obon Holiday Special] Now you too can be an EA Master! “Mindset for Improving EA Operation”

https://www.gogojungle.co.jp/finance/navi/articles/72829

8/17 [Obon Holiday Special] Now you too can be an EA Master! “Precautions during EA Operation”

https://www.gogojungle.co.jp/finance/navi/articles/73797

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That’s all,

it’s a substantial and very important read,

even if you can’t grasp it right away, please be sure to skim it!

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【Reiwa’s Double-E EA Listing】

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

Specifically categorized Reiwa’s Double-E EAs

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

(Diversification by genre is essential when building a portfolio)

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【Reiwa’s Double-E Serialized Articles】

■ EA Beginner Course

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

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Regarding “How to calculate EA risk management”

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

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

■ How to find winning EAs from backtests

https://www.gogojungle.co.jp/finance/navi/series/1714

■ No sugarcoating! GoGoJungle raises issues!

https://www.gogojungle.co.jp/finance/navi/series/1701

Where is GoGoJungle’s inquiry form?

https://www.gogojungle.co.jp/finance/navi/articles/64723

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■Reiwa’s Double-E “Push-buy / Pull-sell logic” released!!

https://www.gogojungle.co.jp/finance/navi/articles/65010

■Double-E FX musings

https://www.gogojungle.co.jp/finance/navi/series/610

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【Reiwa’s Double-E’s Belief】

Develop EAs by sound methods,

and gain the trust of more people,

maintain a long-term WIN-WIN relationship,

and aim to invigorate the EA market and raise literacy.

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