8/28【Beginner EA Lesson】What is a Trend Following EA?
FX Auto Trading, Reiwa’s Double-I.
Starting this month, in the spirit of a proper “EA Beginner Course,”
we will once again explain things from the very basics.
“From now on, I want to start not only FX but also EA trading!”
and for those who are serious and earnest, this is for you.
【What is a Trend-Follow EA?】
This time we will explain about the “Trend-Follow EA.”
Characteristics of Trend Following
Trend following is a trading method that follows the market direction.
For example, expressed with a moving average (MA),
・Buy on a Golden Cross
・Sell on a Dead Cross
This means trading that does not go against the trend direction.
The same applies to EAs, with logic that rides the market flow.
What happens when you actually run it?
Trend-following EAs enter only after the trend is clearly confirmed,
so they do not aim for market tops or bottoms.
Therefore, their win rate is naturally around 40%, which is relatively low.
However, this is the big point.
When the trend extends strongly, profits accumulate over time,
and it is possible to achieve a net positive with a small-loss, large-profit style.
In other words, the strength of trend-following EAs is to absorb a few losses and recoup with big wins.
Ideal Portfolio Management
In reality, the ideal is not to operate Trend-Following EA alone, but to combine it with a scalping EA as a portfolio.
・Trend-Following EA → hold long-term unrealized gains and aim for big profits
・Scalping EA → steadily lock in small profits in the short term
By running these two simultaneously,
you can operate to “have unrealized gains while increasing small, incremental profits.”
Summary
Trend-Following EA has a relatively low win rate (around 40%) but aims for a net positive through small losses and large profits
It does not try to catch the exact top or bottom, but rides the trend with a solid logic
Combining with a scalping EA enables a more stable portfolio management
From the perspective of “which is more important, winning rate or how much profit can be made?” you can understand the value of Trend-Following EA.
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【Flow from starting an EA to intermediate level】
First, mastering how to install 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※
Even at first, it isn’t possible to understand everything at once; some people will stumble.
I stumbled many times at first too, so take it slow and you’ll be fine!
If you have questions, there is a “Contact Form” you can use!
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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 feel you can operate an EA,
you might think, “I don't know which EA will win… I don't want to lose…”.
Therefore, Reiwa no Dabu E-ee has published a series of articles that help with this via backtesting.
The following articles were serialized:
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■ How to Find Winning EAs from Backtests
https://www.gogojungle.co.jp/finance/navi/series/1714
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backtesting underpins that.
Usually, the backtest period is longer than the forward period, and
whether you happen to win in forward testing can be inferred by mastering backtest evaluation methods.
【How should EA risk management be done!?】
And no matter how excellent an EA seems,
if you neglect risk management, FX will fail.
So for EAs how should risk management be done?!
That question is answered in the following article.
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■ “How to Calculate EA Risk Management”
https://www.gogojungle.co.jp/finance/navi/articles/64703
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【EA Management Mindset is Also Important】
And, to sustain EA operation long-term, the “EA operation mindset” is also important.
Information about these articles is as follows:
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12/30★ Year-End/ New Year SP!! All-in EA Lecture Part 3
https://www.gogojungle.co.jp/finance/navi/articles/80551
8/12 [Obon Holiday Special! Now You Are an EA Master! “Mindset for Improving EA Operation”]
https://www.gogojungle.co.jp/finance/navi/articles/72829
8/17 [Obon Holiday Special! Now You Are an EA Master! “Notes During EA Operation”]
https://www.gogojungle.co.jp/finance/navi/articles/73797
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With that said,
this is substantial and quite important content,
so even if you cannot understand it immediately, be sure to read through it!
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【Reiwa’s Double-EE EA Listing】
https://www.gogojungle.co.jp/users/112481/products
Specifically categorized by genres the EA of Reiwa’s Double-Ee belongs to
https://www.gogojungle.co.jp/finance/navi/articles/67162
(Genre diversification is essential when building a portfolio)
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【Reiwa’s Double-Ee Serialized Articles】
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 EAs from Backtestshttps://www.gogojungle.co.jp/finance/navi/series/1714
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https://www.gogojungle.co.jp/finance/navi/series/1701
https://www.gogojungle.co.jp/finance/navi/articles/64723
■ Reiwa’s Double-Ee “Push-Back Buy / Retrace Sell” Official Release!
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-Ee’s Beliefs】
