DAY 3: Objective Improvement through EA Introduction – Reducing Risks of Indecision and Emotion

Last time, we looked at how Expert Advisors (EAs) can complement the mental and time burdens of discretionary trading.
This time, I would like to focus on the “objectivity” gained through EA adoption. In the face of the market, no matter how calm you are, you may feel doubts and anxiety. Let’s dig a little into how EA can support you in such times.

Risks of being driven by emotions

As a discretionary trader, you will inevitably experience moments like “the market suddenly moves against the entry after you enter” or “you end up with a large loss because you hesitated to cut losses.”
If you’re wondering why such situations occur, it’s because you respond emotionally to market moves.

• Fear of losses
  When you think, “I don’t want to lose any more,” you lose the capacity to reevaluate your entry.

• Desire to maximize unrealized gains
  From the expectation that “it may still rise,” you miss the take-profit point.

• Impatience after losing streaks and overconfidence after winning streaks
  When losses pile up, you tend to chase bigger lots to recover. Conversely, when wins accumulate, you become overconfident thinking, “this momentum is safe.”
  

Thus, a discretionary trader inevitably faces the risk that trading judgments will be swayed by emotions.

Objectivity brought by EA

EAs operate according to pre-programmed logic. The points the system makes decisions on are all numeric, leaving no room for emotions to intervene.

• Profit-taking and stop-loss according to logic
  When you set a stop loss according to rules, even if the market moves unexpectedly, the settlement is automatic. Since doubt and regret are less likely to creep in, the risk of loss expansion can be reduced.

• Data accumulation through continued trading
  EA repeats trades that follow the same patterns based on rules. Therefore, data consistency is high, making verification and improvement easier. In discretionary trading, entries can subtly change due to mood or health, but with EA there is no deviation as long as the logic remains unchanged.

• Not that you won’t feel anxious, but minimize behavioral deviation
  Watching the actual market, you might worry, “Is this really okay as it is?” However, understanding that the EA strictly adheres to rules reduces the risk of taking unnecessary actions. Thinking, “If it’s following the rules, stay calm and observe the data,” is a major advantage.

More effective when combined with discretionary trading

While leveraging the objectivity of EA, many want to retain the flexibility unique to discretion.
For example, you could strengthen risk management with discretion only during major economic releases, or decide whether to operate the EA in conjunction with an economic calendar. Such combinations are conceivable.

Customizing the EA’s logic to switch between “normal operation” and “risk-reduction operation during events” is another approach. The experience and market sense developed through discretionary trading can be fully utilized in such settings and tuning.

Today’s recap and next time preview

• In the market, no matter how careful you are, doubts and emotional judgments tend to creep in

• EA executes trades based on logic, reducing judgment deviation and maintaining objectivity

• A combination with discretion is one option to leverage EA’s strengths while allowing discretionary judgment as needed

Next time (DAY 4), we will cover “Prerequisites for operating an EA—basic mechanisms you should know” in a compact way, including system architecture, required tools, and operating environments. We’ll pick out a few安心 confirmation points to review before starting EA operations.

Introduction to the EAs I sell

If you’re interested, please take a look at the EAs I sell.
https://www.gogojungle.co.jp/users/147322/products

The experience and insights gained from daily discretionary trading may bloom even more greatly through EA.

In the next article, we will organize the items needed in preparation for actually using an EA.
Be sure to press “Read more” to deepen your understanding together.