3/16★Sometimes I borrow the power of ChatGPT, installment 46
FX Auto Trading, EA developersReiwa’s Double-Eis.
This serialization has been written with the aim of posting every day since last year.
Probably it has continued for almost a year now!
If you read what has been written so far,
you will surely move closer to better EA operation, I am confident.
And, as I want to take a short break,
I would like to continue posting with the help of ChatGPT.
From time to time, I will post irregularly like before.
Why you are already losing at the moment of entry?
Hello, I am an EA developer, Reiwa’s Double-E.
Today, as a discussion related to the basics of trading,
I will talk about the statement,**“You are already losing at the moment you enter.”**
The reason is the spread
In short, there is a spread in FX.
The spread refers to the difference between bid and ask prices and is part of the broker’s fees.
Because of this spread, you start trading with a negative P/L the moment you enter.
Furthermore, some accounts may incur an extra fee per trade,
**“external fees”** of about 0.4 pips per trade.
Including this fee, at the start of a trade your P/L is negative, and you must overcome it to make a profit.
Spread countermeasures during development
When developing an EA, I set a relatively wide spread to avoid spread disadvantage.
For example, when developing an USD/JPY or EUR/USD EA, I set it to 1.5 pips.
Is “Spread 0” development meaningless?
As a developer, when you build an EA with spread set to 0, you can almost certainly get a steadily rising performance.
However, that has no meaning in actual trading.
In real trading, spreads always exist, so an EA built under ideal conditions does not perform in reality.
Moreover, even in environments where spreads are claimed to be small, there are problems.
For example, even if your account spread is 0.8 pips,
**will the same results appear during the time when the morning spread opens or when slippage occurs?**
Relying only on spread filters is not enough
Some developers set a spread filter to 1.0 pips and
do not enter if the spread exceeds 1.0 pips.
However, even with a spread filter, actual trading frequency may drop,
and backtest results may diverge significantly from real trading.
If that happens, even if backtest shows excellent results,
in actual operation it might be just “luckily winning.”
Then it becomes a gambling-like situation where you don’t know if you will actually win.
Use EA properly
For me, I don’t want you to use EA with a gambling mindset.
The true purpose of EA is a tool aimed at stable profits.
Therefore, it is extremely important to consider spreads and actual trading environments when choosing and using EA.
I wrote this article hoping to convey a bit of that today.
Now, please continue to have a good trading life!
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【Flow from starting EA to intermediate: summary】
First, mastering the installation of EA is important.
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MT4 EA (Expert Advisor), installation procedures for indicators
https://www.gogojungle.co.jp/post/1/8212
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※GoGoJungle video version※
Even at the beginning, not everything can be understood at once; many people struggle.
I also struggled many times at first, so don’t rush, you’ll be fine!
If you don’t understand something, there is a “contact form” to use!
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https://www.gogojungle.co.jp/inquiry
【How to choose 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-E has published the following articles so you can judge to some extent through backtesting.
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■ How to find a winning EA from backtest
https://www.gogojungle.co.jp/finance/navi/series/1714
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Backtesting durations are usually longer than forward periods,
【How should EA risk management be handled!?】
And no matter how excellent an EA seems,
if you neglect risk management in FX, you will fail.
So for EA how should risk management be done?
The article answering this is below.
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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 for a long time, the “EA operation mindset” is also important.
Regarding those articles,
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12/30 End of year 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] This will make you EA Master! “Mindset to Improve EA Operation”
https://www.gogojungle.co.jp/finance/navi/articles/72829
8/17 [Obon Holiday Special] This will make you EA Master! “Cautions during EA operation”
https://www.gogojungle.co.jp/finance/navi/articles/73797
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So,
the content is quite substantial and very important,
even if you can’t understand it right away, please make 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 by genre for Reiwa’s Double-E
https://www.gogojungle.co.jp/finance/navi/articles/67162
(Genre diversification is essential when building a portfolio)
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【List of Reiwa’s Double-E serialized articles】
■ EA Beginner Course
https://www.gogojungle.co.jp/finance/navi/series/1700
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
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-E’s Philosophy】
