6/28 Sometimes I borrow the power of ChatGPT its 128

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

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

Probably we have continued for almost a year now!

If you read what has been written so far,

you will surely move closer to better EA trading, I’m confident.

And, since I’d like to take a short break,

I’d like to continue posting with the help of ChatGPT.

Periodically, I will post as before.

【Discretionary Trading vs EA: The “Correct” in Trading Differs】

Hello.
FX Auto Trading, EA developer's Reiwa Double-E.

Today may be a bit difficult, but
from the perspective of “it naturally follows when you think about it logically”,
I would like to talk about the fundamental differences between discretionary trading and EA (auto trading).

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■ In discretionary trading, the basic rule is not to go against the trend

First, it is often said that in discretionary trading, you should not trade against national monetary policy (the direction of interest rates).
This is basically following the trend.

In simple terms,
the basic approach is to ride the trend with the market in the direction of the trend

For example, something like this:

• After entry, it does not immediately bring large profits

• Sometimes you may temporarily hold a loss

• However, over time, it tends to become profitable

• As much as possible, let profits run and cut losses short
  
  

This is the classic “small losses, big profits” approach.small losses, big profits

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■ However, there is another correct answer for EA

On the other hand, in the world of EA (auto trading),
the story changes a bit.

With EA, first there is the “logic” and then,
whether this logic works in any market environment
is tested by repeatedly backtesting over the long term.

At this time, it doesn’t have to be a trend-following logic.

• A high-win-rate scalping EA

• An EA for range-bound markets using contrarian logic
  
  would also be a good EA if it meets the conditions.
  
  

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■ In EA development, understanding the market structure matters

What’s important here is how you view the market's components.

Not all market participants move only with trend-following, right?

Obviously,

• There are trend-followers

• There are contrarians

• Some take small profits rapidly at high frequency

• Others take time to make large gains

This “diversity of trading styles” is what gives depth to the market and makes trading feasible.
In stocks, for example, you cannot buy unless there are people who want to sell.

---

■ What if EA developers rely on only one side of the theory…

The problem is that there are EA developers who believe only “trend-following is justice.”

Possibilities include

• They can only make that one thing

• They don’t know other methods

• They claim “trend-following is the strongest” to boost their self-esteem

This may be the case.

But in fact, EA is a tool that, taking into account the market structure and various trading styles,

allows for a multi-faceted approach.

If you are a person who can only build trend-following EAs
and a person who can build EAs that respond to multiple market structures,
there will naturally be a gap in their development level.

---

■ Summary

• In discretionary trading, the basic rule is not to go against the trend

• However, in EA, other logic can also be effective

• The market includes a variety of participant styles, including contrarians

• EA developers are judged by whether they understand the market structure

• If you assume only trend-following is correct, you cannot create good EAs

  
  

---

The world of EA management is profound.
There are many cases where relying only on discretionary trading sense will not work.

Therefore,
Having a different perspective is the first step toward success in EA trading.

See you next time!

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【Flow from starting EA to intermediate: aまとめ】

First, it is important to “master installing the EA.”

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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※

Even at first, you may not understand everything at once, and you will stumble. Many people do.

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

If you have questions, use the “Inquiry form”!

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■ GoGoJungle “Inquiry Form”

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

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【How to choose an EA】

Now that you’re ready to operate an EA,

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

So Reiwa Double-Ei has published the following articles to help

to determine善し悪し to some extent via backtesting.

The following articles were serialized.

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■ How to find a winning EA from backtesting

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

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Forward testing is important, but the backtest backs it up.

Usually the backtest period is longer than the forward period,

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

【How to manage EA risk?】

And no matter how excellent an EA is,

FX collapses if risk management is neglected.

Therefore for EAs, how to manage risk?

This is addressed in the following article.

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■ “How to calculate risk management for EA”

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 a long time, “EA operation mindset” is also important.

For those articles,

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12/30★ Year-end and New Year SP!! EA full-understanding lecture part 3

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

8/12【Summer Holiday Special!】Now you too can be an EA Master! “Mindset for improving EA operation”

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

8/17【Summer Holiday Special!】Now you too can be an EA Master! “Notes during EA operation”

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

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With that said,

the content is quite substantial and important,

even if you cannot grasp it immediately, please make sure to read it!

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【Reiwa Double-Ei EA Listing】

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

Specifically, categorized Reiwa Double-Ei EAs by genre

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

(Diversifying genres is essential when building a portfolio)

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【Reiwa Double-Ei serialized articles】

■ EA Basics

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

“About calculating EA risk management”

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

【Portfolio version】How to calculate EA risk management

https://www.gogojungle.co.jp/finance/navi/articles/65978

https://www.gogojungle.co.jp/finance/navi/articles/64738

Where to check first when you don’t understand something about EA

https://www.gogojungle.co.jp/finance/navi/articles/65619

■ How to find a winning EA from backtesting

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

■ No sugarcoating! GoGoJungle raises issues!

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

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

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■ Reiwa Double-Ei: Public release of the “Pullback Buy / Rebound Sell” logic!

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

■ Double-Ei FX musings

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

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【Reiwa Double-Ei’s Philosophy】

Develop EA with a principled approach,

gain the trust of more people,

and sustain a long-term WIN-WIN relationship,

with the aim of revitalizing the EA market and raising literacy.

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