4/27 Occasionally I borrow the power of ChatGPT, part 87 - EA Beginner Course - Navi+ - GogoJungle | Auto Trading - Market Analysis

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

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

We have probably continued for almost a year now!

If you read what I have written so far,

I believe you will come closer to better EA operations.

And, as there are times I want to take a short break,

I will continue posting with the help of ChatGPT.

From time to time, I will post irregularly in the style of my previous posts.

FX automated trading, EA developer: Reiwa's Double-IE.

A common topic about choosing an EA is the emphasis on “win rate.”

There are many types of EAs, but I get the impression that many people seek a high win rate.

However, “a high win rate does not equal a good EA.”

Misconceptions about win rate in EAs

What matters in EA operation is not only win rate, but**the balance between win rate and risk-reward (profit:loss ratio)**.

To be overall profitable, even with a low win rate,

it's important to have a strategy that makes big profits when you win and minimizes losses when you lose.

That said, why do many prefer high-win-rate EAs? I considered a few reasons.

1. Mental strain

The point that **“low win rate hurts mental state”** is very relatable.

Psychologically, when you suffer a string of losses, you naturally feel down.

If you lose often, even if you know you can win big in the end, you may give up midway.

Also, for those who publish their results on social media, there is a mindset that **“a higher win rate is easier to boast about.”**

People feel better when they win more, and if win rate is low, there are fewer chances to show off, so

high win-rate EAs tend to be favored.

2. Inability to hold positions long

Another possible reason is that people cannot hold positions for long.

In particular, trend-following EAs aim to pull profits over long periods to maximize gains, but

there is always a concern that the market may suddenly change during that time.

The anxiety of unrealized profits is stressful for anyone.

As a result, some may manually close positions, which prevents the EA from operating according to its original logic.

Also, those who cannot hold positions long tend to prefer short-term profit-taking styles like scalping.

This may make them favor short-term EAs over long-term trend-following EAs.

To realize the EA’s true performance

EAs are originally designed with win-rate and risk-reward balance in mind.

Therefore, if you manually close positions early just because the win rate is low, the risk-reward balance can collapse

and you are less likely to see the true performance.

In EA operation, managing your mindset and calmly reassessing your investment style is also important.

Rather than chasing a high win rate, it is crucial to aim for a positive total profit.

Well then, I’ll post again if something comes to mind!

See you!

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【Flow from starting EA to intermediate level】

First, it is important to master “installing EAs.”

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MT4 EA (Expert Advisor) and Indicator installation procedure

https://www.gogojungle.co.jp/post/1/8212

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※GoGoJungle video version※

Even at the start, it's not possible to understand everything at once, and some may stumble repeatedly.

I also stumbled many times at first, so take it slow and you’ll be fine!

If you have questions, use the “inquiry form” available!

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■ GoGoJungle “Inquiry Form”

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

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【How to choose an EA】

When you’re ready to operate an EA,

you may think, “I can’t tell which EA will win… I don’t want to lose…”

Therefore, Reiwa's Double-IE has published articles so that you can determine the quality to some extent through backtesting.

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■ How to find winning EAs from backtests

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

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Forward testing is important, but

backtesting underpins it.

Backtesting periods are usually longer than forward periods, and

whether you happened to win in forward testing can be inferred by mastering backtest evaluation methods.

【How should EA risk management be done!?】

And no matter how excellent an EA you obtain,

if you neglect risk management, FX will collapse.

So for EA,how should risk management be done?

The following article answers this.

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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 also important】

And, to sustain EA operation for the long term, the “EA operation mindset” is also important.

For those articles,

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

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

8/12 [Obon Holiday Special!] Now you can become an EA master! “Mindset for EA operation improvement”

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

8/17 [Obon Holiday Special!] Now you can become an EA master! “Notes during EA operation”

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

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That said,

the content is quite lengthy and important,

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

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【Reiwa's Double-IE EA Listing】

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

Specifically, categorized by genre the EA of Reiwa's Double-IE

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

(Genre diversification is essential when building a portfolio)

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【Reiwa's Double-IE serialized articles】

https://www.gogojungle.co.jp/finance/navi/series/1700

“About EA risk management calculations”

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

■ No-holds-barred! GoGoJungle raises issues!

https://www.gogojungle.co.jp/finance/navi/series/1701

https://www.gogojungle.co.jp/finance/navi/articles/64723

■Reiwa's Double-IE opens the “Dip-buy/Retrace Sell” logic for disclosure!

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

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

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【Reiwa's Double-IE’s Beliefs】

Develop EAs with proper methods,

gain the love and trust of more people,

and maintain a long-term WIN-WIN relationship,

to revitalize the EA market and raise literacy.

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