7/21 Occasionally I borrow ChatGPT's power, its 131
FX Automated Trading, an EA developer Reiwa's Double-Eyed.
This series has been written with the aim of posting every day since last year.
I think I’ve managed to continue for almost a full year!
If you read what I’ve written so far,
I claim you’ll come closer to better EA operation.
And now, since I’d like to take a short break,
I’d like to continue posting with the help of ChatGPT.
From time to time, I will post irregularly as I have done before.
【Periods to Watch in EA Operations】 Easter Holidays, Year-end/New Year, and Christmas
FX automated trading, this is Reiwa's Double-Eye for EA developers.
This time I would like to talk about “periods to watch in EA operation.”
Recently there was the Easter holiday, but during this period, EA operation needs a little extra caution.
■ What is Easter Holiday?
Easter holidays (Resurrection) are a major Christian holiday observed in many Western countries, lasting from Friday through Monday. Trading is often halted on these days,
and trading volume decreases across markets worldwide.
During that time, in markets around the world, trading volume drops significantly.
■ What happens when trading volume decreases?
In short,
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Spreads tend to widen
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Price movements become unstable
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Even when a normal logic would win, performance tends to deteriorate
such issues occur.
The reason spreads widen is simple.
With fewer market orders, brokers cannot offer as favorable prices to clients,
and as a result, spreads widen.
■ EA Includes a Spread Filter
By the way, the EA I’m developing includes a safety feature called a “Spread Filter.”
When spreads exceed a preset upper limit, it avoids entries.
In other words, a safety mechanism that prevents trading in clearly unfavorable conditions, so excessive worry is unnecessary.
That said, there is still a risk of sudden, unexpected fluctuations.
■ Top 3 Points to Watch
The three periods to watch in EA operation are below.
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Easter Holidays
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Around Christmas (late December)
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Year-end to New Year (late December to early January)
During these periods, global trading volume tends to decline sharply, increasing the likelihood of sudden moves like “flash crashes.”,
and as a result, there is a higher risk of abrupt changes.
In fact, at the start of 2019, the USD/JPY pair experienced a lightning crash where it dropped several yen in an instant.
This is said to have been caused by large orders during a period of low liquidity.
■ Some brokers have different trading hours
Also, some brokers have different trading hours depending on their own schedules.
Be sure to check the schedule around year-end/New Year and holidays with your broker.
■ Still, I mostly go with “hands-off”
Apologies for listing so many precautions, but (laughs),
usually, I operate my own EA with a completely hands-off approach.
Of course, I have tested with extensive backtests across various market conditions,
and long-term edge has been confirmed.
The most important thing in EA operation is not to overreact to short-term results.
Ultimately, the mindset should be to accumulate assets over the long term.
■ Summary
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Easter, Christmas, and year-end/New Year are periods to be cautious for EA operation
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Be wary of widening spreads and unstable price movements
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If uncertain, temporarily turning the EA off is OK
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However, if there is proven long-term advantage in past tests, trust and leave it running is important
Easter, Christmas, and year-end/New Year are periods to be cautious for EA operation
Be wary of widening spreads and unstable price movements
If uncertain, temporarily turning the EA off is OK
However, if there is proven long-term advantage in past tests, trust and leave it running is important
I hope this helps a little.
I will continue to support everyone’s EA operation!
That’s all for now!
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【Flow from Starting an EA to Intermediate Level】
First, mastering “placing an EA” is essential.
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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, it isn’t easy to understand everything all at once, and some may stumble. It’s okay, just take your time!
If you don’t understand something, there is an “Inquiry Form” you can use!
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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 worry, “I don’t know which EA will win… I don’t want to lose…”.
So Reiwa's Double-Eye has published the following articles to help with that through backtesting.
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https://www.gogojungle.co.jp/finance/navi/series/1714
【How should risk management for EAs be done!?】
And no matter how excellent an EA is, FX will fail if risk management is neglected.
For EAs, the question is
“How should risk management be done?”
The article answering this is below.
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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, for long-term continuation of EA operation, the “EA operation mindset” is also important.
Regarding those articles,
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12/30 ★ Year-end/New Year SP!! EA Complete Guide Part 3
https://www.gogojungle.co.jp/finance/navi/articles/80551
8/12【Summer Holiday Special!】 Now you too can be an EA Master! “EA Operation Mindset”
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,
so even if you don’t understand it all at once, please make sure to read it!
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【Reiwa's Double-Eye EA Listing】
https://www.gogojungle.co.jp/users/112481/products
Specifically, categorized EA listings for Reiwa's Double-Eye
https://www.gogojungle.co.jp/finance/navi/articles/67162
(Diversification by genre is essential when building a portfolio)
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【List of Reiwa's Double-Eye 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 a 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
■ Reiwa's Double-Eye: Public release of “Push buy / pullback selling logic”
https://www.gogojungle.co.jp/finance/navi/articles/65010
https://www.gogojungle.co.jp/finance/navi/series/610
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【Reiwa's Double-Eye's Belief】
Develop EA by sound methods,
and cherish the trust of more people,
maintain a long-term WIN-WIN relationship,
aim to revitalize the EA market and improve literacy.
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