3/13★Sometimes I borrow the power of ChatGPT, installment 43
FX Auto Trading, EA developerReiwa’s Double I-E here.
This series, written with the aim of posting every day since last year.
It looks like we’ve probably continued for almost a year now!
If you read the content written so far,
I boast that you’ll get 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 in the past.
No more buy-the-dip or sell-the-rally EAs
Hello, I am Reiwa’s Double I-E, an FX automated trading and EA developer.
Today, I would like to share my thoughts on buy-the-dip and sell-the-rally EAs.
Current state of buy-the-dip/sell-the-rally EAs
So far I’ve looked at many commercially available EAs.
I can understand other people’s EA logic as well, but
in fact, most of them are based on the **buy-the-dip/sell-the-rally** logic.
Certainly, this logic is a simple strategy that enters in line with the trend and trades when the price retraces.
However, it has become so mainstream that many are similar to each other.
Portfolio risk – losses at the same time
The problem is that increasing the number of EAs of the same type in a portfolio raises the risk of losses occurring at the same time.
Since they all operate with buy-the-dip/sell-the-rally logic in a similar way,
they move at the same entry timing against market fluctuations, leading to losses clustering together.
For users operating with multiple EAs,
this reduces portfolio diversification and makes risk distribution difficult.
Are buy-the-dip/sell-the-rally easy to develop?
From a developer’s perspective,
the buy-the-dip/sell-the-rally logic is the easiest to create.
Thus, technically the hurdles are low, and it’s natural that many developers choose this.
However, for users, too many similar EAs offer little novelty and narrow the scope of operation, so
I honestly think we don’t need any more buy-the-dip/sell-the-rally EAs.
Rise to the level developers are expected to achieve
I believe we’ve entered an era where the level of developers matters.
If developers understand the characteristics of their own EAs and their impact on the market,
they should not keep making similar buy-the-dip/sell-the-rally EAs, but rather explore new, innovative logics.
Otherwise, the entire EA industry won’t progress, and users will have fewer choices.
What I wish for is an uplift in the level of EA developers.
By incorporating more diverse logics and offering really valuable new EAs to users, the whole industry will evolve.
Importance of real trading
After all, if an EA has solid real-trade performance, long-term results in real operation matter.
Even if you release a new EA with the same logic, it’s hard to beat existing ones in real terms.
In other words, if you value real-world performance, there is no need to release new buy-the-dip/sell-the-rally EAs.
Easy for users to understand
Through this discussion,
I hope you’ve gained at least some understanding of how buy-the-dip/sell-the-rally EA logic functions.
If you know when to enter and how to place stop-loss and take-profit, EA operation will be much easier to handle.
Conclusion
From now on, EA developers must explore more diverse logics and offer truly valuable EAs to users.
With so many existing buy-the-dip/sell-the-rally EAs, continuing to create the same type of EAs isn’t enough;
we need the resolve to take on new challenges.
I myself will continue to develop EAs that incorporate new ideas useful to users.
With that, please continue to have great trading life!
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【Summary of the flow from starting an EA to intermediate level】
First, it is important to “master EA installation.”
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MT4 EA (Expert Advisor), and Indicator installation procedures
https://www.gogojungle.co.jp/post/1/8212
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※GoGoJungle video version※
Even at the start, not everything can be understood all at once, and some may stumble.
I also stumbled many times at first, so don’t rush—you’ll be fine!
If something isn’t clear, 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 think you can operate an EA,
you might think, “I don’t know which EA will win… I don’t want to lose…”
Therefore, Reiwa’s Double I-E has published to some extent through backtesting to determine goodness and badness,
the following articles were serialized.
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■ How to find winning EAs from backtesting
https://www.gogojungle.co.jp/finance/navi/series/1714
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the support for it is backtesting.
Backtesting periods are usually longer than forward periods,
whether the EA wins in forward is something you can gauge by perfecting backtest evaluation methods.
【How should FX risk management be done?!】
And no matter how excellent an EA is,
FX collapses if risk management is neglected.
Therefore, for EAs, how should risk management be done?
This is answered in the following articles.
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■ “How to calculate EA risk management”
https://www.gogojungle.co.jp/finance/navi/articles/64703
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【EA operation mindset is also important】
And, to sustain EA operation long-term, an “EA operation mindset” is also important.
For those articles,
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12/30★ Year-end and New Year SP!! EA All-in-One 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! “EA Operation Mindset”
https://www.gogojungle.co.jp/finance/navi/articles/72829
8/17 [Obon Holiday Special] Now you too can be an EA Master! “Notes while operating EA”
https://www.gogojungle.co.jp/finance/navi/articles/73797
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the content is substantial and highly important, so even if you don’t understand it immediately, be sure to read it!
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【Reiwa’s Double I-E EA Listing】
https://www.gogojungle.co.jp/users/112481/products
Specifically, categorized the Double I-E EAs by genre
https://www.gogojungle.co.jp/finance/navi/articles/67162
（Diversifying genres is essential when building a portfolio）
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【Reiwa’s Double I-E serialized articles】
■ EA Beginner Course
https://www.gogojungle.co.jp/finance/navi/series/1700
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“How to calculate 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 an EA
https://www.gogojungle.co.jp/finance/navi/articles/65619
■ How to find winning EAs from backtesting
https://www.gogojungle.co.jp/finance/navi/series/1714
■ Unreserved! GoGoJungle raises a question!
https://www.gogojungle.co.jp/finance/navi/series/1701
https://www.gogojungle.co.jp/finance/navi/articles/64723
■Reiwa’s Double I-E “Buy-the-dip/Sell-the-rally logic” now openly released!!
https://www.gogojungle.co.jp/finance/navi/articles/65010
https://www.gogojungle.co.jp/finance/navi/series/610
【Reiwa’s Double I-E’s Belief】
Develop EAs with a straightforward method,
receive the support of more people,
and maintain a long-term WIN-WIN relationship while
revitalizing the EA market and improving literacy.
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