4/10★ Sometimes I borrow the power of ChatGPT, number 70
FX Auto Trading, the EA developerReiwa’s Double I.
Since last year, this series has been written aiming for daily posts.
Probably we have continued for almost a year now!
If you read what I’ve written so far,
you’ll surely come closer to better EA operation, I believe.
And, since I’d like to take a short break,
I will continue posting with the help of ChatGPT.
Occasionally, I’ll post irregularly like in the past.
FX auto trading, Reiwa’s Double I, the EA developer.
Today,
**TP (Take Profit) and SL (Stop Loss)**
how should they be configured
is what we’ll discuss.This is a part of parameter settings for EA operation that many people worry about.
Treat TP and SL as “seasoning”
In my case, most EAs have TP and SL pre-programmed.
However, there are EAs that users can set themselves.
When that happens, you might worry about how to set them, but
the conclusion is that TP and SL should be treated as “seasoning.”
This is because market volatility is always changing.
The value in pips changes with market conditions
For example, in USD/JPY, there were times when it was around 75 yen per dollar, and recently times when it exceeded 150 yen per dollar.
Even with the same 1% move, it’s 75 pips at 75 yen per dollar and 150 pips at 150 yen per dollar, a twofold difference in pips.
Also, depending on the market, there are days moving 100 pips or more, and days with almost no movement.
Thus, market conditions are always changing, and fixed TP or SL may fail to adapt to the market.
Optimizing parameters to derive it
In reality, you should backtest through parameter optimization to derive the optimal TP and SL values.
For example,
“I want to set TP to 10 pips” or “I want the TP:SL ratio to be 2:1”,
and if you set them based on personal preference such as “SL cannot withstand more than 100 pips,”
there is a higher risk of losses when market conditions don’t match.
EA performance is determined by optimization
Originally, EA performance is maximized with optimized parameters.
Based on long-term tick data backtesting results, the optimal TP and SL values emerge naturally.
For example,
trend-following EAs tend to have TP > SL,
while scalping EAs tend to have TP < SL.
Ignoring these fundamental EA traits and setting TP or SL based on personal preference can lead to failure.
Standard for parameter setting
Backtest with optimized parameters,
considering the TP and SL tendencies,and if you lightly adjust according to personal taste, that should be fine.
Summary
If your preferences are based on objective data,
you can manage risk and achieve satisfying operation in the end.
However, instead of setting parameters by intuition alone,
it is important to derive optimal values based on solid data.
Then, let’s go!
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【Flow from starting EA to intermediate level】
First, mastering the installation of “EA” 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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※GoGoJungle video version※
Even at first, you may not understand everything at once, and some will surely stumble.
I also stumbled many times at first, so don’t worry, go step by step!
If you have questions, there’s a contact form—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 able to operate an EA,
you may think, “I don’t know which EA will win… I don’t want to lose…”.
Therefore, Reiwa’s Double I
has published enough to determine quality through backtesting,
in the following articles in this series.
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https://www.gogojungle.co.jp/finance/navi/series/1714
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【How should EA risk management be done?!】
And no matter how excellent an EA you obtain,
if you neglect risk management,FX will fail.
So for EA,what to do about risk management?
This is answered in the following article.
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■ About calculating EA risk management
https://www.gogojungle.co.jp/finance/navi/articles/64703
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【EA operation mindset is also important】
And,to sustain EA operation for the long term, the “EA operation mindset” is also important.
For those articles,
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12/30 ★ End-of-year/New Year SP!! EA Full Explanation Course Part 3
https://www.gogojungle.co.jp/finance/navi/articles/80551
8/12 [Obon holiday special!] Now you too can be an EA Master! “Mindset for improving EA operation”
https://www.gogojungle.co.jp/finance/navi/articles/72829
8/17 [Obon holiday special!] Now you too can be an EA Master! “Notes during EA operation”
https://www.gogojungle.co.jp/finance/navi/articles/73797
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So,
this content is substantial and quite important,
even if you can’t understand it right away, please make sure to read it!
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【Reiwa’s Double I EA Listing】
https://www.gogojungle.co.jp/users/112481/products
Specifically, Reiwa’s Double I EA categorized by genre
https://www.gogojungle.co.jp/finance/navi/articles/67162
(Portfolio diversification by genre is essential)
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【Reiwa’s Double I 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 I’s Beliefs】
Develop EA with a straightforward approach,
so that more people will use it,
and maintain a long-term WIN-WIN relationship,
with the aim of energizing the EA market and improving literacy.
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