4/29★Sometimes I borrow the power of ChatGPT, part 89
FX Automated Trading, EA developer'sReiwa's Double-I.
Since last year, this series has been written with the aim of posting every day.
Probably we have continued for almost a year now!
If you read what I have written so far,
I am confident you will come closer to better EA operation.
And, since I want to take a short break,
I would like to continue posting by leveraging the power of ChatGPT.
Occasionally, I will post irregularly like before.
FX automated trading, Reiwa's Double-I, the EA developer.
This time,"Points to avoid being deceived by unscrupulous product sellers"I would like to write about.
In the world, there are unscrupulous product sellers targeting people interested in FX automated trading.
In particular, be cautious of products or EAs that use language designed to excite greed, promising large profits in a short period.
For example, you may see phrases like "Monthly profit of 1,000,000 yen!" or "Monthly profit 100%!", which are classic signs of unscrupulous products.
First of all, the word "monthly profit" itself denotes a rate (%), not an amount.
In other words, the expression "monthly profit of 1 million" is inherently incorrect.
If a seller uses such expressions, it is highly likely that they have little knowledge about FX or EAs or intentionally trying to deceive uninformed people.
Be careful not to fall for these products.
How to identify unscrupulous products
1. If they promote screenshots of monthly profits or explosive gains
Products that heavily emphasize monthly profits or explosive gains are often unscrupulous and designed to stimulate greed.
Explosive profits on a monthly basis do not equate to long-term stability.
Understand that "monthly profit of 1,000,000" could still coincide with a future loss of 1,000,000 in the next month.
2. If backtests or forward tests are not published
Backtesting is a test that uses historical market data to verify EA performance.
It is conducted by the EA developer to confirm the logic's edge.
If no backtest results are provided, it is unclear what criteria the EA was developed under,
and long-term reliability is likely doubtful.
3. Check recovery factor and maximum drawdown
When choosing an EA, it is important to check recovery factor (loss recovery) and maximum drawdown (largest loss).
EAs are evaluated based on long-term operation data, where these metrics matter.
Do not judge by monthly profits or short-term results alone; review long-term performance and risk management.
4. Check long-term forward testing
Forward testing is performance in actual market conditions.
When selecting an EA, it is important to look at at least one year of forward-test data.
This helps determine whether profits can be sustained over the long term, not just briefly.
Monthly losses are common
Even the best EAs will have monthly negatives;
rather than focusing on monthly profits or short-term gains, judge by long-term results.
If a monthly loss occurs, it is not correct to immediately stop the EA.
A simple rule of thumb is: if the backtest maximum drawdown is exceeded, stop using that EA.
I will explain this in more detail another day.
Summary
To avoid being deceived by unscrupulous products, do not be swayed by monthly profits or screenshots of explosive gains,
and make decisions based on backtests and forward-test data.
Do not rush in; verify the data carefully and aim for safe EA operation.
And with that, goodbye!
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【From Starting an EA to Intermediate: Flow Summary】
First, mastering "installing the EA" is important.
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MT4 EA (Expert Advisor), Indicator Installation Procedures
https://www.gogojungle.co.jp/post/1/8212
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※GoGoJungle Video Version※
At first you may not understand everything at once, and some will surely struggle.
I also stumbled many times at the beginning, 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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https://www.gogojungle.co.jp/inquiry
【How to Choose an EA】
Now that you feel ready to operate an EA,
you might think, “I don’t know which winning EA to pick… I don’t want to lose…”.
Therefore, Reiwa's Double-I has published the following series to help you understand through backtests.
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https://www.gogojungle.co.jp/finance/navi/series/1714
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【How should EA risk management be handled?!】
And no matter how excellent an EA you obtain,
ignoring risk management leads to ruin in FX.
what should risk management be?
Here is the article answering that.
https://www.gogojungle.co.jp/finance/navi/articles/64703
【EA Operation Mindset is also Important】
And,to sustain long-term EA operation, the mindset of EA operation is also important.
Details are in the articles,
12/30★ Year-end and New Year SP!! All you need to know EA Course Part 3
https://www.gogojungle.co.jp/finance/navi/articles/80551
8/12 [Obon Holiday Special]! This will also make you an EA Master! “Mindset for Improving EA Operation”
https://www.gogojungle.co.jp/finance/navi/articles/72829
8/17 [Obon Holiday Special]! This will also make you an EA Master! “Notes During EA Operation”
https://www.gogojungle.co.jp/finance/navi/articles/73797
So,
the content is substantial and quite important,
even if you cannot understand it immediately, please be sure to review!
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【Reiwa's Double-I EA Listing】
https://www.gogojungle.co.jp/users/112481/products
Specifically categorized Reiwa's Double-I EA by genre
https://www.gogojungle.co.jp/finance/navi/articles/67162
(Portfolio diversification by genre is essential)
【Reiwa's Double-I Serial 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 Belief】
Develop EA by proper methods,
and be loved by more people,
maintain a long-lasting WIN-WIN relationship,
aim to revitalize the EA market and improve literacy.
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