6/29★Sometimes I borrow the power of ChatGPT Part 129

 FX Automated Trading, the Reiwa no double-i, is.

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

I think I’ve continued it for nearly a year now!

If you read what I’ve written so far,

I’m confident you’ll move closer to better EA operation.

Also, I want to take a short break,

so I’m going to continue posting with the help of ChatGPT.

From time to time, I will post as before, irregularly.

【Discretionary Trading × EA Operation】
Is it a waste to have only one? How to harness the strengths of both?

Hello.
FX automated trading, EA developer of Reiwa no double-i.

Today, I would like to talk about the coexistence of discretionary trading and EA operation,
sharing my own experiences as well.

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■ The Basics of Discretionary Trading: “Following the trend”

Personally, when engaging in discretionary trading, I focus on
the “trend-following” approach that does not go against the direction of the trend.

Because, with trend-following—

• Even if you incur a drawdown right after entry, you can endure it within expectations

• If you ride the trend, you are more likely to end up with a profitable position

• Keep losses small and let profits run as much as possible (loss-cutting and profit-running)

This is the logic of “growing profits while avoiding big losses.”

Even if the win rate dips below 50%,
the ability to “let profits grow” makes increasing profits quite feasible,
which is a major advantage of trend-following trading.

Even for scalping, if you enter in the direction of the trend,
the sense of security after entry is vastly improved.

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■ But, the story changes with EA (Automated Trading)

However!

This is still a discussion about “discretionary trading.”
When it comes to EA (automated trading), the story changes a lot.

EA is not driven by human-like “feeling,” but by
long-term data validation = big data utilization to discover advantages.

• Patterns that are difficult for discretion

• Logics that humans cannot reproduce manually

Even such things can be built with EA.
This is the decisive difference between discretion and EA.

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■ The true value of discretion and EA is in a complementary relationship

Here is what I want to convey:

“Discretion and EA are different. But that is why they can coexist.”

For example, imagine patterns like these:

• A day when discretionary trading loses
  → EA automatically and steadily accumulates profits to cover the loss

• A period when EA logic is temporarily out of state
  → discretionary trading can carefully assess the market and compensate

Having only one side is not necessarily bad, but
leveraging both strengths enables more stable operation.

In fact, favoring only one side can lead to opportunity loss and risk concentration, which I feel is “wasteful.”

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■ The true value of EA also lies in “entries that do not overlap with discretion”

Another point I want to emphasize is that
EA and discretion have little overlap in entry logic.

Discretion makes entries based on intuition and judgment,
while EA uses pre-determined rules to mechanically seize opportunities.

Thisdifferent perspective is why
discretion and EA can complement each other’s weaknesses.

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■ Summary: It’s wasteful to rely on only one!

• Discretion trading has its own strengths

• EA has its own strengths

There is no disadvantage to having both.

“Since I am discretionary, I won’t use EA.”
“Just run EA, that’s enough.”
…If you’ve thought that, please take a moment to reconsider.

I believe incorporating both sides leads to more stable FX operation.

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I have written various articles on EA, operating mindset, and risk management,
so please also check the past articles!
(See below.)
(Please refer to the bottom.)

See you again!

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【Summary of the flow from starting EA to intermediate level】

First, it is important to “master EA installation.”

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MT4 EA (Expert Advisor) and 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 all at once, and you may stumble.

I also stumbled many times in the beginning, so don’t rush—you’ll be fine!

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

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

【How to choose EA】

Now that you think you can operate an EA,

you may worry, “I don’t know which EA will win… I don’t want to lose….”

So Reiwa no double-i has written the following to help assess via backtests.

Please refer to the articles below.

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■ How to find winning EAs from Backtests

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

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but backtest results underpin its justification.

Backtest duration is usually longer than forward duration,

and whether you happen to win in forward is something you can largely infer by mastering backtest evaluation.

【EA risk management, how to do it!?】

And no matter how excellent an EA seems,

FX will collapse if risk management is neglected.

So in the case of EA how should risk management be done?

This is answered in the following article.

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■ About “How to calculate 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 sustain EA operation for a long time, “EA operation mindset” is important as well.

For those articles,

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12/30 ★ Year-end and New Year SP!! A complete EA course, part 3

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

8/12 [Obon holiday special!] Now you too can become an EA master! “EA operation mindset”

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

8/17 [Obon holiday special!] Now you too can become an EA master! “Notes during EA operation”

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

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That said,

the content is quite substantial and important, so

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

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【Reiwa no double-i EA Listing】

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

Specifically categorized Reiwa no double-i EAs by genre

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

(Portfolio diversification requires genre diversification)

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【Reiwa no double-i's serialized articles】

■ EA Beginner's Course

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

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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

■ How to find winning EA from Backtests

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

■ Rei wa no double-i “Push-down buying, pullback selling” publicly released!!

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

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

【Reiwa no double-i’s Philosophy】