Every now and then I borrow the power of ChatGPT, Episode 148 [Seasonal Factors and EA Operation Risk Management]
FX Auto Trading, the EA developer Reiwa’s Double-I-E.
This series has been written with the aim of posting daily since last year.
Probably we have been able to continue for about a year and a half!
If you read what I have written so far,
I am confident you will move closer to better EA operation.
Also, there are times I’d like to take a short break,
so this time I will continue posting with the help of ChatGPT.
Occasionally, I will post irregularly as before.
【Seasonal Factors and Risk Management in EA Operations】
〜The Pitfalls of Summer and Christmas Break〜
In FX markets, there are periods when price movement tendencies change due to seasonal factors.
A prime example is the “summer dull market” and the “Christmas holidays.”
What is the Summer Dull Market?
During summer, dealers and institutional investors who move large sums of money go on long vacations.
In particular, dealers who are making solid profits tend to take vacations early.
As a result, market participants decrease and price movements become sluggish.
This phenomenon is called the “summer dull market.”
Christmas Holidays and Year-End Movements
overseas, there is a long Christmas break at year-end, and similarly market participants decrease.
However, there is one more point to be careful about at year-end.
Dealers who could not profit and remained behind are often at risk of losing their jobs,
and may try a big risky trade thinking “might as well go big in the end.”
At such times, price movements can deviate greatly from normal theories and be unexpected.
EA Operation Judgment
In these periods, EA logic is more likely to diverge from the expected price movements.
Therefore, depending on the situation, pausing the EA can be an effective decision.
Of course, if the market is an easy “bonus market,” that may not apply, but
as a general tendency, I recommend cautious operation.
Summary
■ Summer dull markets and Christmas holidays reduce market participation and make price movements unstable
■ At year-end, large trades by dealers trying to “make one last push” often cause abnormal price movements
■ For EA operation, it is important to stop or operate with these seasonal factors in mind
Note: Investment decisions are the operator’s responsibility.
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【From Beginner to Intermediate: How to Start EA】
First, it is important to “master installing EAs.”
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MT4 EA (Expert Advisor) and Indicator Installation Procedures
https://www.gogojungle.co.jp/post/1/8212
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※ Gogojang Video Version ※
Even at first, not everything can be understood at once, and some people will struggle quite a bit.
I also struggled many times at first, so don’t rush—you’ll be fine!
If you don’t understand something, there is a “Contact Form,” so please use it!
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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 be thinking, “I don’t know which EA will win… I don’t want to lose…”
Therefore, Reiwa’s Double-I-E has published articles so that you can judge up to a certain extent through “backtesting.”
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https://www.gogojungle.co.jp/finance/navi/series/1714
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backtesting supports it.
Backtesting periods are usually longer than forward periods, and
whether you win by chance in the forward period can be gauged by mastering backtesting evaluation methods.
【How should EA risk management be done?!】
And no matter how excellent an EA you obtain,
if you neglect risk management, FX will collapse.
Therefore, for EA, how should risk management be done?
The following articles answer that.
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■ “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.
Regarding those articles,
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12/30 Year-End and New Year SP!! EA Comprehensive 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 Mindset”
https://www.gogojungle.co.jp/finance/navi/articles/72829
8/17 [Obon Holiday Special] Now you too can be an EA Master! “Cautions While EA is Operating”
https://www.gogojungle.co.jp/finance/navi/articles/73797
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That said,
the content is substantial and quite important,
so even if you don’t understand it immediately, be sure to read through it!
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【Reiwa’s Double-I-E EA Listing】
https://www.gogojungle.co.jp/users/112481/products
Specifically categorized Reiwa’s Double-I-E EAs by genre
https://www.gogojungle.co.jp/finance/navi/articles/67162
(Genre diversification is essential when building a portfolio)
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【List of Reiwa’s Double-I-E Serialized Articles】
https://www.gogojungle.co.jp/finance/navi/series/1700
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“About calculating 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
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-I-E’s Beliefs】
Develop EA with proper methods,
and gain the trust of many people,
to maintain a long-lasting WIN-WIN relationship,
aim to revitalize the EA market and raise literacy.
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