3/30★Sometimes I borrow the power of ChatGPT 60 - EA Beginner Course - Navi+ - GogoJungle | Auto Trading - Market Analysis

FX Automated Trading, EA developerReiwa's Double-I.

This series, which I’ve been writing aiming for daily posts since last year.

Probably I have continued for almost one year now!

If you read what I have written so far,

you will surely be closer to better EA operation, I claim.

And, since I want to take a short break,

I will continue posting by borrowing the power of ChatGPT.

From time to time, I will post like in the past, irregularly.

FX automated trading, EA developer—Reiwa's double-Eye (Double-Eri).

On the role of stop loss and its settings

Most EAs have a pre-set stop loss (loss cut line).

For example, “if it goes 100 pips against you from breakeven, stop loss,” is built into the EA’s program.

A proper EA developer computes the most appropriate numbers based on long-term historical data, and sets the stop loss accordingly.

In other words, for long-term operation, numbers that are more likely to improve performance are being set.

Thoughts on stop loss percentage settings

Many traders might use a method where the lot size is set so that the stop loss corresponds to a certain percentage of account funds.

However, I do not adopt this concept in EA operation.

The reason is that it can lead to insufficient risk management.

Why is stop loss percentage setting insufficient for risk management?

Setting stop loss by a percentage of account funds is fine in itself, but

EAs can have losing streaks, so the maximum expected loss depends on the maximum drawdown in the backtest.

In other words, if you raise the percentage to seek higher returns,

there is a higher risk of capital running short and bankruptcy before the maximum drawdown occurs.

Smart risk management methods

If you can perform your own backtesting,

you can determine appropriate risk settings based on the expected maximum drawdown.

On the other hand, for those who cannot backtest,

the total amount, which is the required margin per unit lot plus the maximum drawdown, will give you a rough minimum fund requirement.

Based on that amount, it’s wise to adjust the number of lots to avoid feeling too risky.

Summary

In EA operation, setting stop loss as a percentage of account funds can lead to insufficient risk management.

What’s important is to operate with the maximum drawdown taken into account based on backtest results.

This allows for risk-controlled, stable operation.

For details on risk management calculations, please refer to the links below.

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■ About “EA Risk Management Calculation”

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

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See you!

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【From Starting EA to Intermediate: Flow Summary】

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 first, not everything can be understood at once, and some people may 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 Us form,” so please use it!

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■ GoGoJungle “Contact Form”

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

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【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…”.

Therefore, Reiwa's Double-Eye released the following articles to allow a certain degree of evaluation through backtesting.

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

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【How should EA risk management be done!?】

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■ About “EA Risk Management Calculation”

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

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【EA Operation Mindset is Important】

And, for long-term continuation of EA operation, the “EA operation mindset” is important.

For those articles,

12/30 Year-End and New Year SP!! All-EA Course Part 3

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

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

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

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the content is quite substantial and important, so

even if you can’t understand it right away, be sure to read through it!

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【Reiwa's Double-I-EEA Listing】

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

Specifically, categorized EA by genre for Reiwa's Double-Eye

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

(Diversification by genre is essential when building a portfolio)

【Reiwa's Double-Eye Series 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

■ How to Find Winning EAs from Backtesting

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

■ Reiwa's Double-Eye: “Buy the dip / Sell the rebound” Now Open!

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

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

【Reiwa's Double-Eye Beliefs】

Develop EA by straightforward methods,

gain more people’s support,

and maintain a long-term WIN-WIN relationship,

aiming to revitalize the EA market and improve literacy.

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