FX Auto Trading, the EA developer Reiwa's Double-EE.

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

Probably it has 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 so, there are times when I want to take a short break,

I would like to continue posting with the help of ChatGPT here.

Occasionally I will post irregularly, as in the past.

7 out of 10 in the Averaging Down Tournament collapsed!? – The reality of Averaging Down EAs

FX Auto Trading, Reiwa's Double-EI is here!

This time, we will talk about the dangers of Averaging Down EAs.

In the world of FX auto trading, there are many EAs.
Among them, the **“averaging-down EA”** is popular among some traders, but
is it really something that can make money in the long run?

In fact, a test event called the **“Averaging-Down Tournament”** was held in 2023.

The results were…

Incredible, 70% of the participants collapsed!
And some of them became uncontactable afterward.

This is a reality you cannot overlook when using averaging-down EAs.

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What is an Averaging-Down EA?

An Averaging-Down EA is an EA that takes additional positions when in drawdown, thereby adjusting the average entry price and aiming for a market reversal.
This is the method used by such EAs.

At first glance it may seem like a good strategy to recover losses,

✅weak in one-sided trending markets
✅prone to collapse if risk management is off
✅tends to have large maximum drawdown

such as these high-risk operationstend to occur.

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What happened in the Averaging-Down Tournament

In 2023, a group of traders using averaging-down EAs held a “Averaging-Down Tournament.”

As a result,

?70% of participants collapsed!
?Some participants became unreachable…

From this, it is clear that
averaging-down EAs tend to be high-risk in operation.

There is potential for huge profits in a short time, but
the corresponding risk of collapse is extremely high in reality.

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Be careful of “screenshot profits” flooding social media!

Recently on X (formerly Twitter), Instagram, TikTok,
you may have seen posts like
“I earned ○○ yen in one day!”such **“screenshot of huge profits”**.

Most of them are,

?no backtest published or extremely short timeframe
?backtest exists but the “max drawdown > initial capital”
?leading to free EA distribution via LINE open chat

and thus

a sale of EAs aimed at a “commission business” is widespread.

I’m not saying Averaging-Down EA is always bad,
but the above opaque sales methods require caution.

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Tips for safely selecting EAs

“So, which EAs can I safely operate?”

The answer is simple.

✅Buy from a trustworthy sales site
✅Backtests and forwards tests are clearly published
✅Risk management and operation methods are clearly explained

For example, a reliable sales company should have

✔backtest publications
✔forward testing disclosed
✔explanation of operational risks

such ashigh transparency EA sales.

Also, trustworthy EA developers will
explain the EA logic and risk management in detail,
and ensure users can operate after being satisfied.

If an EA is truly well-made, there is no need for shady SNS marketing.

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Summary

?In the Averaging-Down Tournament, 70% collapsed!
?Averaging-Down EAs are weak in one-sided trend markets and carry high risk of collapse
?Be careful of social media “screenshot profits”! Many are Averaging-Down EAs
?When choosing an EA, obtaining it from a trusted sales site is best

Be cautious of products that push you to earn big money immediately.

Calmly, with a long-term perspective, protect your assets through prudent operation!

See you again!

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【Flow from starting an EA to intermediate level】

First, mastering how to install the EA is important.

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MT4 EA (Expert Advisor) and indicator installation steps

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

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※GoGoJungle video version※

At first you may not understand everything all at once, and some people will stumble endlessly.

I also stumbled many times at first, so don’t rush—you’ll be fine!

If you have questions, there is a “Contact form,” so please use it!

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

【How to choose an EA】

Now that you think you can operate an EA,

you might think, “I don’t know which EA can win… I don’t want to lose…”

So Reiwa's Double-EI has,

“so that you can judge to some extent using backtests,”

the following articles were serialized.

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■How to find a winning EA from backtests

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

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Forward testing is important, but

backtesting is what backs it up.

Most likely the backtest period will be longer than the forward period, and

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

【How to manage EA risk!?】

And no matter how excellent an EA is,

FX will collapse if you neglect risk management.

So with EAs, how should risk be managed?

This is addressed in the following article.

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■ About calculating EA risk management

https://www.gogojungle.co.jp/finance/navi/articles/64703

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【EA operation mindset is also important】

And in order to continue EA operation for a long time, the “EA operation mindset” is also important.

Those articles are here,

12/30 Year-end and New Year SP!! EA Full Explanation Course Part 3

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

8/12 [Obon Holiday Special] This will 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 make you an EA Master! “Notes during EA operation”

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

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So,

the reading is substantial and quite important,

even if you cannot understand it right away, please make sure to skim through it!

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【Reiwa's Double-EI EA Listing】

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

Specifically categorized Reiwa's Double-EI EAs by genre

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

(Diversifying the portfolio by genre is essential)

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【List of serialized articles by Reiwa's Double-EI】

■EA Beginner Course

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-EI's Beliefs】

Develop EA through proper methods,

and attract more people’s support,

maintain a long-term win-win relationship,

and aim to revitalize the EA market and improve literacy.

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