8/19★【Obon Holiday企画！】【EA Risk Management・Case Study】Part 3

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

From 8/11 for ten days,
【Obon Holiday Project!】 is titled to be helpful for better EA operation!

We hope to be of help toward better EA operation!

【EA Risk Management & Case Study】


So,
this time, using a certain EA as an example,
「EA Risk Management & Case Study

【“THE AUDCAD” Type B】

https://www.gogojungle.co.jp/systemtrade/fx/15459

We will base the risk calculation on this.

And since it was already listed on the product page,we will reproduce it here.

However, at the time of listing it was not backtested with a variable spread, so the maximum drawdown values and rates differ,

please consider this a learning exercise and try calculating it yourself!

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(6) About risk management



It is, of course, about calculating assumptions from past backtests, but

for example, what is the minimum capital required for 0.1 lot? we will calculate this. From past backtests, the sum of - required margin per unit lot - maximum drawdown per unit lot gives the minimum required capital. ------------------------------- ■Required margin per unit lot Calculate the required margin for 0.1 lots of AUD/CAD. For AUD/CAD, calculate using the AUD/JPY rate. (Thus, when the yen is weak, the amount is larger) If AUD/JPY is 100 yen, 0.1 lot (10,000 units), with 25x leverage 100 yen × 10,000 ÷ 25 = 40,000 yen. If the maximum drawdown of this EA is about 60,000 yen, adding them gives approximately 100,000 yen. ------------------------------- In other words, in past backtests, about 100,000 yen funds allow up to 0.1 lot. ------------------------------- If you do this much, the maximum drawdown as a percentage of funds is: If maximum drawdown is 60,000 yen on 100,000 yen funds, that is 60%. If this seems too large, reduce the lot size to a tolerable level, 0.05 lot would yield a maximum drawdown of 30,000 yen, i.e., 30%, 0.01 lot would yield 6,000 yen, i.e., 6%, and so on to determine an acceptable lot size. ------------------------------- This method is also described in Larry Williams’ book, I believe. We highly recommend users to apply this calculation method themselves and be able to perform similar calculations for other EAs.

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Alright then!

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【Summary of the Flow from Starting an EA to Intermediate Level】

First, mastering the installation of 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

Even at the start, not everyone can understand everything at once, and some may stumble.

I too stumbled many times at first, so take your time and you’ll be fine!

If you have questions, use the “Contact Form”!

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

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【How to Choose an EA】

Now that you think you can operate an EA,

you may wonder, “Which EA will win… I don’t want to lose…”.

Therefore, Reiwa’s Double I has published several articles to help with this through backtesting.

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

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【How should EA risk management be done!?】

And no matter how excellent an EA is,

if you neglect risk management, FX will collapse.

So for EAs, how should risk management be done?

This article answers that.

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■ About “EA Risk Management Calculation”

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.

Articles on these are,

12/30★ Year-end & New Year SP!! EA Full Explanation 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! “Mindset for Improving EA Operation”

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

8/17【Obon Holiday Special!】 Now you too can be an EA Master! “Cautions during EA Operation”

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

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It is quite substantial and very important content, so

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

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【Reiwa’s Double I-EA Listing】

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

Specifically categorized Reiwa’s Double I-EA by genre

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

(Portfolio building requires genre diversification)

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【Reiwa’s Double I-E series articles】

■ EA Beginner Course

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

“About the calculation method for EA risk management”

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 EAs from backtestshttps://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

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■ Reiwa’s Double I-E “Push-Back Buy / Retracement Sell Logic” Released!!

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

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

【Reiwa’s Double I-E’s Belief】

Develop EA by legitimate means,

to gain the love of as many people as possible,

and maintain a long-term WIN-WIN relationship,

aiming to revitalize the EA market and raise literacy.

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