7/28 Sometimes I borrow the power of ChatGPT, Episode 138 【Is FX really gambling?】
FX Auto Trading, the EA developer Reiwa’s Double-E.
This series has been written aiming for daily posts since last year.
Probably we have continued for almost a year now!
If you read what I’ve written so far,
you’ll surely move closer to better EA operation, I’m confident.
And, since I’d like to take a short break,
I’ll continue posting with the help of ChatGPT.
Occasionally I’ll post irregularly, like before.
【Is FX really gambling?】
〜Another perspective seen from the structure of investment advisory〜
Hello, this is Reiwa’s Double-E.
Today I’d like to talk about a topic you often hear about.
“FX is basically gambling, right?”
Many people might think so, right?
Indeed, leverage (the principle of leverage) allows trading more than your funds, which can look risky.
It may seem risky at first glance.
However, let’s shift our perspective a little.
■ FX also has a “legal framework”
In fact, there is a registration system called “Investment Advisory” by the Financial Services Agency, and FX is clearly included within its scope.
In other words,
there are people who publicly register and operate as investment advisers who provide FX-related guidance.
This can be read as,
If FX were truly just a hopeless gamble,
you wouldn’t have publicly institutionalized “investment advisory” entities, would you?
■ What makes it different from gambling?
In Japan, casino-type gambling outside of public monopolies like pachinko, horse racing, and boat racing is generally prohibited.
Yet FX can operate within a legal framework as an “advisory business.”
Where does this difference come from?
■ The point is “risk management”
What makes FX stand apart from gambling is the fact that the method of risk management is established.
Leverage indeed increases risk, but
it is also a powerful tool to enhance capital efficiency.
The question is whether you let it drive you,
or whether you can “utilize” it in your trading.
Through EA (expert advisor) trading, I have come to feel that thorough risk management is the most important thing.
I believe that operation based on this management is the key to elevating FX to an investment.
■ Summary: FX’s future changes with knowledge and management
In the end,
the reason people say “FX = gambling” is likely due to a lack of knowledge and preparation when taking on risk.
But, there is a legitimate framework and advisers in this world, so there is a proper path to fight with proper knowledge and management.
As an investment adviser, I will continue to share knowledge and systems for “fighting properly” with you all.
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【Summary of the flow from starting EA to intermediate level】
First, mastering how to install an EA is essential.
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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 then at first you can’t understand everything at once, and some people will surely struggle.
I also stumbled many times at first, so don’t rush, you’ll be fine!
If you have questions, use the “Contact form” available!
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■ GoGoJungle “Contact form”
https://www.gogojungle.co.jp/inquiry
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【How to choose an EA】
Now that you’re ready to run an EA,
you might think, “I can’t tell which EA will win… I don’t want to lose…”
So Reiwa’s Double-E provides a degree of discernment via “backtesting” and has published the following articles in this series.
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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 underpins it.
Backtest durations are usually longer than forward periods, and
whether you happened to win in forward testing can be inferred by mastering backtest evaluation methods.
【How should FX risk management be done for EA?!】
And no matter how excellent an EA you obtain,
neglecting risk management will cause FX trading to fail.
Therefore, for EA, the question ishow to manage risk!?
This is addressed in the following articles.
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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, to sustain EA operation long-term, the “EA operation mindset” is also important.
For those articles,
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12/30 Year-end and New Year SP!! EA complete course Part 3
https://www.gogojungle.co.jp/finance/navi/articles/80551
8/12 [Obon Holiday Special!] Now you too can be an EA Master! “EA Operation Improvement Mindset”
https://www.gogojungle.co.jp/finance/navi/articles/72829
8/17 [Obon 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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That said,
the content is quite substantial and important,
so even if you don’t understand it immediately, be sure to read through!
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【Reiwa’s Double-E EA Listing】
https://www.gogojungle.co.jp/users/112481/products
Specifically, I categorized Reiwa’s Double-E EA by genre
https://www.gogojungle.co.jp/finance/navi/articles/67162
(Diversification by genre is essential when building a portfolio)
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【Reiwa’s Double-E serialized articles】
■ EA Beginner Course
https://www.gogojungle.co.jp/finance/navi/series/1700
https://www.gogojungle.co.jp/finance/navi/articles/64703
Portfolio edition: EA risk management calculationhttps://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-E’s Belief】
