Occasionally I borrow the power of ChatGPT Part 71
FX Auto Trading, the EA developerReiwa’s Double-E here.
This series, written with the aim of posting every day since last year.
We’ve probably continued for almost a year now!
If you read what has been written so far,
you’ll surely come closer to better EA operation, I’m confident.
And since I’d like to take a short休止 period,
I will continue posting with the help of ChatGPT.
Occasionally, I will post irregularly as in the previous posts.
FX Auto Trading, EA developers—Reiwa’s Double-E.
Today, I extract interactions between various EA developers and clients,
and based on that, I asked ChatGPT to think about the issues.
EA (Expert Advisor) is a program that trades only when entry conditions are met,
and does not necessarily trade a fixed number of times every day, week, or month.
However, from what the clients say this time,
they seem to have the erroneous expectation that,
“If you buy an EA, it will trade at a fairly steady frequency and yield results in a短期間.”—a false expectation—
“Misunderstanding of ‘short-term trading目的’”
When considering what the client means by “short-term trading目的,”
they may hold the following view:
“A great EA is one that trades daily or frequently.”
This is incorrect.
Since an EA trades only when entry conditions are met,
having fewer trades does not necessarily mean the EA is bad.
Deciding that “no trades = EA not functioning” is evidence of not understanding the basics of trading logic.
“There should be results within a fixed period”
In investing and trading, there are waves of gains and losses (drawdown).
EA performance varies with market conditions, so
judging good/bad because there were no profits for one week is overly simplistic.
Short-term evaluation is meaningless; performance should be judged via backtests and long-term real trading.
“There are EA that generate stable profits every day or every month.”
This is a common misunderstanding, but
“an EA that consistently generates profits every month” basically does not exist.
Because the market is always changing, and no particular trading method can always work.
If there exists an EA that can generate a fixed profit every month, it is an illusion that ignores financial market uncertainty.
What is needed to dispel clients’ misunderstandings
As sellers of EA, we should clearly convey the following in advance so customers do not hold such misunderstandings.
1. Make sure they understand that EA behavior changes with market conditions
“This EA trades only when entry conditions are met, so it does not trade at a fixed frequency.”
“There are times when no trades occur, which is evidence that EA is operating properly.”
“Do not judge EA performance from short-term results.”
2. Emphasize that it is not guaranteed to make money every month
“FX markets have various environments such as trending and ranging. EA may perform well in some markets and may not trade in others.”
“Please judge performance by long-term data, not short-term results.”
3. Instead of saying “not an EA for short-term trading,” convey that “the essence of EA is unrelated to short-term trading.”
“EA does not trade every day; its number of trades varies with market conditions.”
“Evaluating EA from a short-term viewpoint is wrong; operation considering market environment is important.”
“The purpose of EA is to capture market opportunities and make appropriate entries, not to trade every day.”
Conclusion
Because the client in question does not understand the basic concept of EA,
they seem to think “no trades in a short period = EA not functioning.”
However, EA is fundamentally “enter only when entry conditions are met,”
and does not guarantee short-term trading frequency, so it is essential to explain this clearly.
As EA sellers,
we should not base on customers’ literacy; from the start, provide information to prevent misunderstandings.
Therefore, on sales pages and FAQs,
clearly state that “EA is not judged by short-term results” and “no-trade can be a normal behavior,”
which will help prevent future troubles.
━━━━━━━━━━━━━━━
【From Beginner to Intermediate: Flow Summary for Starting EA】
First, mastering installation of the EA is crucial.
--------------------------------------------------------------------
MT4 EA (Expert Advisor) and indicator installation procedures
https://www.gogojungle.co.jp/post/1/8212
--------------------------------------------------------------------
※GogoJungle Video Version※
At first, you may not understand everything at once, and you will stumble a lot, but you’ll be fine if you stay calm.
If there is something you don’t understand, there is a “Contact form,” so use it!
----------------------------------
https://www.gogojungle.co.jp/inquiry
【How to Choose an EA】
Now that you’re thinking you can operate an EA,
you may think, “I don’t know which winning EA to pick… I don’t want to lose money….”
Therefore, Reiwa’s Double-E decided to publish the following articles in series so you can gauge somewhat via backtests.
https://www.gogojungle.co.jp/finance/navi/series/1714
【How should I manage EA risks!?】
And no matter how excellent an EA seems,
if you neglect risk management, FX will collapse.
So for EA, how should risk management be handled?The following article answers this.
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 also important.
Those articles are here:
12/30 Year-end and New Year SP!! The full EA 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! “Mindset for Improving EA Operation”
https://www.gogojungle.co.jp/finance/navi/articles/72829
8/17 [Obon holiday special!] Now you too can become an EA Master! “Precautions During EA Operation”
https://www.gogojungle.co.jp/finance/navi/articles/73797
----------------------------------
That said,
the content is quite substantial and important,
so even if you can’t understand it immediately, be sure to read it!
━━━━━━━━━━━━━━━
【Reiwa’s Double-E EA Listing】
https://www.gogojungle.co.jp/users/112481/products
Specifically, I categorized Reiwa’s Double-E EA by genre
https://www.gogojungle.co.jp/finance/navi/articles/67162
(Portfolio diversification by genre is essential)
━━━━━━━━━━━━━━━
【Reiwa no Double-E Series Articles】
■EA Beginner Course
https://www.gogojungle.co.jp/finance/navi/series/1700
“About how to calculate EA risk management”
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 Beliefs】
Develop EA with a proper approach,
strive to gain the support of more people,
and maintain a long-lasting WIN-WIN relationship,
aiming to revitalize the EA market and improve literacy.
━━━━━━━━━━━━━━━
