For those who have done foreign exchange transactions, you should know that if you want to continue to make profits, you should have your own trading strategy. If you are a person with no execution but want to have EA software to replace manual orders, then you also need a good strategy To support your EA software, there are many types of EA on the outside market, but how much do you know about foreign exchange EA? How much do you know about the strategies used by Forex EA? Let’s discuss EA software strategy with you today!

  1. Excellent strategies can be applied to different varieties, and the single-variety strategy has a higher probability of failure in the future

EA can only achieve good performance on one variety, which can only show that the market is good, not a good strategy;

EA can achieve good performance on multiple varieties, which shows that the strategy is good and can be used in a variety of markets;

At present, there are many strategic EAs on the market that do not have universal applicability. For example, some trend EAs can only be applied to volatile varieties such as the pound and Japan. If they are replaced by products such as Europe and the United States, they will lose their effect.

For example, the shock EA can only be used for products such as Europound, Australia and Switzerland, but not for the pound plus Australian dollar.

This narrowly applicable strategy is easily affected by parameter overfitting. The future market is unpredictable, and the probability of unconventional fluctuations is certain. If the strategy is too narrow, the probability of future failure is higher.

  1. The instability of a single strategy, and the combination of multiple strategies is the “Holy Grail” of winning

There is no good or bad market. In the traditional concept, the transmission concept is that only trends can make money. It seems that professional traders are doing trend trading.

In fact, this is not the case. 70% of the time in the trading market is in the process of random fluctuations, and only 30% of the market has a clear trend. Some large-scale trends may even appear once every few years. Obviously, we do not have enough Time to wait for the arrival of the big trend.

Trends and shocks are an integral part of the market. Due to the inertia of thinking, manual trading is difficult to achieve both types of market. Therefore, successful traders often only grab one of the market.

Programmatic trading has no human drawbacks, and thinking inertia does not exist, so we can achieve both trends and shocks, and comprehensively improve the stability and applicability of the strategy.

Trend: Do not add positions, use different cycles to determine the direction of the trend and the position of support and resistance to determine the entry point. The big cycle reverses reverse or the trend strength weakens to exit the market.

Concussion: Do not add positions, shield the market trend based on multi-period trend strength indicators, and enter the market after the market enters the shock range to sell high and buy low.
Different Strategies EA

  1. Reject Martin, do not do grids, do not increase positions and anti-order strategies

Resolutely do not do grid trading and Martin strategy, any risk uncontrollable strategy will not be adopted.

For increasing positions, do not try, increasing positions will lead to larger positions, which can easily lead to large losses when encountering large fluctuations.

Professional traders pay more attention to risk and scale, while amateur investors pay more attention to profit and time.

Regardless of the shock strategy or the trend strategy, they will not resist singles. As long as the conditions are met, they will appear regardless of profit or loss.

  1. Mid-line transactions to increase expectations and reduce transaction costs

Excessively frequent transactions will greatly increase transaction costs. Sometimes, it is not the winning rate but the frequency that defeats the trading strategy.

Refer to the holding time of investment banks, focus on mid-line transactions, increase profit points for each transaction, and increase expectations.

among them:

The trend average holding time is 57 hours, and the shock average holding time is 90 hours.

Trend strategy trading varieties trade a total of 11 currency pairs

They are:

Direct trading: EURUSD (Europe and America), AUDUSD (Australia), USDCAD, (United States and Canada), USDJPY (United States and Japan)

Cross trading: GBPJPY (pound day), GBPAUD (pound Australian), GBPCAD (pound plus);

EURJPY (European Japanese), EURCAD (European Canada), EURAUD (European Australia), EURGBP (European pound)

Shock strategy

A total of 10 currency pairs are traded in trend strategy trading varieties

They are:

Direct trading: EURUSD (Europe and America), AUDUSD (Australia), USDCAD, (United States and Canada), USDJPY (United States and Japan)

Cross trading: GBPJPY (pound day), GBPCAD (pound plus);

EURJPY (European Japanese), EURCAD (European Canada), EURAUD (European Australia), EURGBP (European pound)
Currency fluctuation table

A good strategy should be able to adapt to the market as much as possible in terms of depth and breadth. Too much manual intervention is not reliable, so try not to interfere.

The principle of hedging EA is very simple, because many currencies in the foreign exchange market rise and fall at the same time, such as AUDUSD and NZDUSD. In most cases, they rise and fall at the same time. If one day AUD has risen a lot, NZD has not risen, then It may be that NZD has stagnated and will catch up sooner or later. At this time, we will short AUD and long NZD, which is a hedge.