3/20★Sometimes I borrow the power of ChatGPT, installment 50 - EA Beginner Course - Navi+ - GogoJungle | Auto Trading - Market Analysis

FX Auto Trading, EA developersReiwa's Double-Eis.

Since last year, I’ve been writing this series aiming for daily posts.

Probably it has continued for almost a year now!

If you read what I’ve written so far,

I believe you’ll approach a better EA operation.

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

I will continue posting by leveraging ChatGPT’s power.

Occasionally, I’ll post irregularly, like before.

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

Today I’d like to talk about “Characteristics of people who write complaints.”

A common scenario is

“They purchase an EA by only looking at forward performance and lack proper risk management.”

This is often observed.

In fact, this is the most common pattern for failure in EA trading.

Risk of buying by forward performance alone

When purchasing an EA, many people place importance on its forward performance (real trading results).

Of course, choosing a high-performing EA is important, but

if you decide to buy based on that alone, you may fall into a trap you didn’t expect.

Because forward performance only reflects performance in the current market environment.

Markets are constantly changing, and past results do not guarantee future results.

In other words, there is no guarantee that “this winning EA now will surely keep winning in the future.”

Operations without proper risk management are dangerous

Another common point among complainers is“lack of risk management.”

If you’re drawn by forward results and operate without risk management, you may incur large losses.

For example,

operating with an excessive lot size relative to your funds.

starting without anticipating maximum drawdown.

This often leads to an inability to endure a single large loss.

Usually, this is the cause of major complaints.

What’s important in EA operation: forward performance plus risk management

To manage assets with EA, it’s most crucial to implement not only forward performance but also solid risk management.

By performing risk management, you can operate less influenced by market fluctuations and avoid missing chances to grow your assets over the long term.

Examples of concrete risk management include,

Setting lot sizes appropriate to your funds.

Starting with an expected maximum drawdown and managing funds to withstand losses.

If you do these properly,

even with some losses, you won’t suffer fatal damage, and you won’t end up with complaints.

Summary

If you start operating by looking only at forward performance and neglect risk management, the risk of failure in EA operation becomes very high.

This pattern is often seen in people who write complaints.

So,

when purchasing or starting to operate an EA, don’t rely solely on forward performance;

be sure to conduct proper risk management before starting to operate.

Well then!

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【Summary of the flow from wanting to start EA to intermediate level】

First, it is important to “master installing the EA.”

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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 at once, and I think many will stumble.

I also stumbled many times at first, so take your time 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 money…”

So Reiwa's Double-E

has written the following articles to help you assess using backtesting.

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

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but backtesting underpins it.

Backtesting periods are usually longer than forward periods, and

whether you happen to win on forward is often estimable by refining backtest evaluation.

【How should EA risk management be done!?】

And no matter how excellent an EA you obtain,

FX collapses if risk management is neglected.

Therefore in the EA context how should risk management be done?

The article answering this is below.

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■ About calculating EA risk management

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

【EA operation mindset is also important】

And, to sustain EA operation long-term, the “EA operation mindset” is important.

Articles about those are,

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

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

8/12 [Obon Holiday Special]! This will make you an EA master! “Mindset for improving EA operation”

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

8/17 [Obon Holiday Special]! This will make you an EA master! “Cautions during EA operation”

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

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the content is substantial and quite important,

even if you can’t understand it immediately, please be sure to read through!

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【Reiwa's Double-E EA Listing】

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

Specifically categorized EA listings for Reiwa's Double-E

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

(Diversification by genre is essential when building a portfolio)

【Reiwa's Double-E serialized articles】

■ EA Beginner Course

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

“About calculating EA risk management”

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

Portfolio version: About calculating EA risk management

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 Beliefs】

Develop EA with proper methods,

gain wider trust from many people,

and maintain a long-lasting WIN-WIN relationship,

aiming to revitalize the EA market and improve literacy.

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