From time to time I borrow the power of ChatGPT, number 68. - EA Beginner Course - Navi+ - GogoJungle | Auto Trading - Market Analysis

FX Automated Trading, EA developersRyōwa no Double-Eye here.

This ongoing series has been written with the aim of posting every day since last year.

Probably we’ve continued for almost a year now!

If you read what has been written so far,

I’m confident you’ll come 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.

From time to time, I will post as before, irregularly.

FX automated trading, Ryōwa no Double-Eye, the EA developer.

Today, I will answer particularly common questions from many inquiries.

Questions

“For the forward data on the sales page, is there a threshold of the profit factor at which it should stop operating?”

Answer

In short, the profit factor (PF) is not a criterion to stop operation.

PF is a number that varies greatly depending on market conditions and the period considered.

In favorable market phases for the EA, it can jump high; in unfavorable phases, it can drop.

Therefore, there is no clear standard like “stop if this value falls below X.”

Why PF is not a reliable indicator

High dependence on period: PF varies greatly depending on which period you calculate.

In short periods, results may skew high due to favorable market conditions, or drop in unfavorable conditions.

Market environment effects: For example, during a period of yen depreciation or high volatility, PF rises or falls with market conditions the EA favors or struggles with.

Therefore, even if PF temporarily drops, it does not directly translate to overall EA performance or future results.

What should you base the stop decision on?

In my case, I place emphasis on the maximum drawdown (DD) expected from backtests.

If during operation the maximum drawdown computed from backtests or historical results is updated, I may reconsider operation.

I use how much drawdown can be tolerated as a standard; if the maximum DD is exceeded, it prompts reevaluation of market conditions or EA characteristics.

Current market conditions and drawdown

Particularly in the current period of yen depreciation, drawdowns are more likely to be updated.

For example, when 1 USD is 150 yen, a 1% market move corresponds to 150 pips, whereas at 1 USD 75 yen, 1% is 75 pips.

In other words, in a yen-weak environment, the same 1% move yields twice the pip range.

Therefore, in the current yen-weak conditions, drawdowns are more likely to update compared to past yen-strength periods.

Summary

PF fluctuates greatly with market conditions, so it is not suitable as a stoppage criterion.

Rather, it is better to reconsider operation or stop based on updates to the maximum drawdown expected from backtests.

I hope this helps!

See you!

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【Flow from starting 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 first, you may not understand everything at once, and some people will stumble.

I also stumbled many times at the beginning, so don’t rush—you’ll be fine!

If you have questions, use the "Contact Form"!

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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 think you can run an EA,

you might wonder, “I can’t tell which EA will win… I don’t want to lose…”.

Therefore, Ryōwa no Double-Eye has published series to help with this,

so that you can understand it to some extent through backtests.

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■ How to find winning EAs from backtests

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

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Usually the backtest period is longer than the forward period, and

whether you won by chance in forward testing can be inferred to some extent by perfecting backtest evaluation methods.

【How should we manage EA risk?】

And no matter how excellent an EA seems,

FX collapses if risk management is neglected.

So for EAs, how to manage risk?

is answered in the following article.

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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 Important】

And, to continue EA operation for a long time, the “EA operation mindset” is also important.

Articles on these topics are as follows,

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

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

8/12【Obon Holiday Special】Now you too can become an EA Master! “EA Operation Improvement Mindset”

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

8/17【Obon Holiday Special】Now you too can become an EA Master! “Notes during EA operation”

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

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it is quite a substantial and important read, so

even if you don’t understand everything immediately, please make sure to read it!

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

（Portfolios require genre diversification）

【Ryōwa no 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

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

【Ryōwa no Double-Eye’s Beliefs】

Develop EA with integrity,

gain wider support from people,

maintain a long-lasting WIN-WIN relationship,

and活性化 promote awareness in the EA market and literacy.

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