DAY 8: EA operation and mental management - it's not enough to just “set it and forget it”

In previous installments we have looked at how EA (Expert Advisor) works, how to choose it, and the importance of numerical analysis using backtesting and Quant Analyzer.
With this information in mind, configuring and building the logic for an EA may proceed more smoothly to some extent.
However, in actual operation, there are stillhuman mental aspectsthat frequently present challenges.

Today, let's think about mental management in EA operation.
Some of you may think, “Since it’s automated trading, the human mind doesn’t matter.” However, even in EA operation, it is surprisingly common forfrustration and anxietyto arise, orexcessive expectationsto form.

Reasons why anxiety arises even in EA trading

1. Watch real-time profit and loss fluctuations
   Similar to discretionary trading, if you repeatedly check the running EA’s positions and P/L numbers, you tend to be unsettled by unexpected losing streaks or temporary drawdowns.
   Anxiety grows about whether it is okay to leave things as they are, and there are cases where people change the settings midway.

2. Rushing the results
   EA operates based on probabilistic logic. Whether each individual trade turns out a certain way should be judged bythe accumulation of long-term expected value, but some give up operating after a few losses.

3. Overconfidence leading to complacency
   Conversely, if you become overconfident that “it will win automatically,” you risk neglecting necessary maintenance and adaptation to market changes.
   As a result, you may notice the drawdown too late and incur unexpected losses.

Measures to reduce psychological burden

1. Control how often you check
   Keeping MT4/MT5 open all the time to chase P/L can lead to emotional behavior.
   If you limit the times you view EA results to certain daily windows or only on weekends, you may minimize anxiety.

2. Decide operation rules (stopping/continuing criteria) in advance

   • Pause the EA if drawdown reaches a certain percentage of capital

   • If a certain number of consecutive losses occur, reevaluate parameters
     By setting numeric rules from the start, you are less swayed by emotions.

3. Portfolio of multiple logics
   Rather than relying on a single EA, combining multiple logics can complement each other’s strengths and weaknesses in operation.
   This reduces the likelihood of long losing streaks and makes the mental state comparatively more stable.

4. Understand how the EA works
   Not only numbers and win rates, but understanding which market conditions strengthen the logic and when losses are likely helps you calmly handle drawdowns.
   This also relates to reviewing the results obtained with Quant Analyzer learned previously.

Caution against “too much neglect”

Being automated trading, some may think, “Completely neglect it is fine.”
But markets are constantly changing, and there is always a risk of unexpected events such as VPS or network issues, or rate changes by brokers.

• Regular operation checks
  At least once a week or once a month review trade history and fill statuses to ensure nothing abnormal is happening.

• Major events like economic indicators
  During important economic indicator releases or monetary policy announcements, unpredictable price movements can occur. Consider in advance whether to pause the EA, including whether to pause during such events.

Today's summary and next time preview

• Even in EA operation, mental fluctuations tend to persist more than expected

• Quantify the timing of adjustments in advance and avoid excessive monitoring to reduce psychological burden

• Completely neglecting it risks missing signals, while over-attachment leads to emotional intervention. The key is to use EA with a “moderate distance.”

Next time (DAY 9) will cover “Backtesting and Forward Testing — Differences and How to Use Them,” organizing how to interpret test results and considerations anew.
To run EA with confidence, thorough testing before actual operation is essential. Building on what you’ve learned so far, let’s deepen your understanding further.

Introduction to the EAs I Sell

For those who want to manage their mindset calmly when operating EAs, please take a look at the EAs I sell as well.
https://www.gogojungle.co.jp/users/147322/products

An EA with clear operation rules and settings ranges may help reduce mental load.

In the next article, we will review the basics of “Backtesting and Forward Testing” again and consider more practical verification methods.
Be sure to click “Read more” and continue learning together.