3/27★Sometimes I borrow the power of ChatGPT, its 57
FX Automated Trading, the 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 operation, I claim.
Then, since I’d like to take a short break,
I’ll continue posting with the help of ChatGPT.
Occasionally I will post irregularly, like in the past.
FX automated trading, Reiwa’s Double-E in the field of EA development.
Today’s title is a bit provocative, but
**“Isn’t the EA you often obtain prone to blowing up?”**
I will discuss this theme.
Do you still use an EA that blows up?
For example, you obtain an EA and run it but it blows up,
after a while you’re told “Now we’re confident!” and you obtain another EA and start again. The result blows up again…
To put it mildly, I want to say: “Stop obtaining and using from there.”
There are many reasons why blowups recur, but the root cause is a lack of proper EA risk management.
So, why does it happen? I’ll explain the reasons in detail.
The margin increases due to the yen’s depreciation
Recently there has been a sharp depreciation of the yen. In such times, it is natural for the required margin to increase.
For example, suppose you trade 0.1 lots with 25x leverage.
When 1 USD = 100 JPY, the required margin is 40,000 yen.
When 1 USD = 150 JPY, the required margin becomes 60,000 yen.
In other words, as the rate rises, the margin increases proportionally.
If the rate becomes 1.5 times higher, the required margin also becomes 1.5 times higher.
As a result,
the distance to a stop-out shortens,
and positions that could previously withstand drawdowns may not, leading to stop-outs and account blowups.
Be careful with brokers that can’t perform risk calculations!
As an EA developer like me, doing such risk calculations is standard, but
if a broker distributes gold-nanpin martingale EAs that blow up frequently,
it’s possible that they aren’t performing risk calculations.
A broker that distributes such EAs may be a risky one.
A broker that provides EAs that blow up each time isn’t trustworthy.
Continuing to use such brokers’ EAs is dangerous, and I recommend stopping the operation.
Still, stopping FX automated trading would be a waste!
Some of you may feel like, “Maybe I should stop using EAs…”.
However, I think stopping FX automated trading would be a waste.
There are still many魅力 to EAs!
If you use a trustworthy EA, there is a real possibility to grow assets over the long term while managing risk.
So please don’t give up!
From now on, I will keep communicating the魅力 of EA operation and the importance of risk management, so I appreciate your continued support!
Until next time!
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【Flow from starting EA to intermediate level】
First, mastering “EA installation” is essential.
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MT4 EA (Expert Advisor) and indicator installation steps
https://www.gogojungle.co.jp/post/1/8212
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※ゴゴジャン video version ※
Even at the start, it’s nearly impossible to understand everything at once, and some people will surely struggle.
I also stumbled many times at first, so don’t rush—you’ll be okay!
If you don’t understand something, 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 may think, “I don’t know which EA will win… I don’t want to lose…”
Therefore, Reiwa’s Double-E has published articles to help you assess with backtesting.
The following articles were serialized.
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https://www.gogojungle.co.jp/finance/navi/series/1714
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Backtesting periods are usually longer than forward periods,
【How should EA risk management be done?!】
And no matter how excellent an EA seems,
if you neglect risk management, FX will blow up.
For EAs, the question is“How should risk management be done?”
An 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 continue EA operation for a long time, the “EA operation mindset” is also important.
For those articles,
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 [Obon holiday special]! You too can become an EA master! “EA operation mindset”
https://www.gogojungle.co.jp/finance/navi/articles/72829
8/17 [Obon holiday special]! You too can become an EA master! “Notes during EA operation”
https://www.gogojungle.co.jp/finance/navi/articles/73797
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the content is substantial and quite important, so even if you don’t understand it right away, be sure to read it!
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https://www.gogojungle.co.jp/users/112481/products
https://www.gogojungle.co.jp/finance/navi/articles/67162
(Diversifying by genre is essential when building a portfolio)
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【Reiwa’s Double-E serialized articles】
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 beliefs】
Develop EAs with proper methods,
gain trust from more people,
maintain a lasting WIN-WIN relationship,
and aim to revitalize the EA market and raise literacy.
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