Up to now, more and more friends who are involved in foreign exchange transactions have a strong interest in foreign exchange EA. The reason why most of my friends enter this industry is also because if you do a good job, it will not only be easy, quick to make money, and free in time, but the profits will be incomparable to other industries.

So many people are blinded by these so-called “benefits.” You have to know that the potential risks are as large as the profit margin is. The risk is always proportional to the profit. Before imagining how much money you can make, you must recognize how much risk you can bear. This is the bottom line of your trading and risk control. The threshold can never be broken.

Today I will talk to you about how to have better risk control standards for foreign exchange EA trading.

Do you know under what circumstances the position may be at risk?

Controlling EA risk is actually related to controlling position risk. Its ultimate goal is to prevent the position from risking. However, EA is a program that cannot intelligently judge many factors that may affect the overall situation. , So manual intervention is required in some cases.

To give a very simple example: Under the planning of the EA program, the extreme market of Brexit and the downturn of the British pound by 1,800 points will not be taken into account, and even the appearance of many EAs is relatively less risk-resistant when the strategy does not match. weak.

In view of the above point of view, give a specific case for analysis. For example, if an investor is currently using the EA counter-trend martingale strategy, his total position is 1W USD, the leverage ratio is 1:400 times the leverage, and the increase ratio is 1.5 times , Currently there are 13 positions, the last position is 2.1 lots, and the total position is almost 6 lots. Do I need to take over this position manually?

Control EA risk
For a 1W US dollar position, although 400 times leverage is used, the total position volume has reached 6 hands, and the maximum position volume is 2.1 hands. Then if the strategy continues, the following will continue to increase the position. The position has reached about 9 lots, so if the market moves in an unfavorable direction, this position will be very, very dangerous, and there is a risk of liquidation.

Therefore, at the beginning of strategic planning, it is necessary to plan for this possible situation. If there is a small probability event, it needs to be dealt with in time, so as to avoid more losses or blind operations that may lead to unnecessary losses.

In this case, it is necessary to decisively suspend and continue to increase the position in accordance with the procedure, and adopt a relatively conservative operation to make it possible to reduce the risk.

  1. Avoid the data market

The performance of most EAs in the foreign exchange data market is not very good, because many data markets are not suitable for most EA strategies, and the data market itself has greater uncertainty. Therefore, the trader’s evasion during the operation process will enable the overall position and strategy to develop in a relatively stable market.

  1. Reduce the types of currency pairs

The purpose of traders for foreign exchange transactions is nothing more than to make a profit, so when investors use EA in order to pursue profit, they will apply their strategies to different types of currency pairs, and increase the overall income through the income of each currency pair. , To achieve a high profit. However, if there is a floating loss or loss during the operation of the trader, it is easy to disrupt the trader’s plan and cause greater losses.

  1. Set the psychological maximum closing line

Many EAs on the market have their own risk control lines, but such restrictions are relatively single, and often they are implemented in practice. Therefore, in the effective control of EA losses and liquidation operations, investors need to set their own inner stop loss.

  1. Avoid major news releases or major data releases

Most EAs do not perform so well in the data market, many data market is not suitable for most EA strategies, and the data market itself has greater uncertainty, so avoiding in the operation process will make the overall position And strategies can develop in a relatively stable market.

From the initial stage of designing the entire EA, it is also necessary to consider the maximum value of risk. Often the appearance of risk is also accompanied by data factors, so in the process, choosing to evade the data market is also an effective protective measure. Here, some trend-type EAs may be more looking forward to the unilateral trend of the data market, but if there are large fluctuations in the up and down market, it will also have an impact on such EAs.

Therefore, it is recommended that you consider using relatively stable parameter settings 1-2 days before the arrival of big data, or close the current transaction, and reopen the EA after the data market to avoid it.

The above is an introduction to the risk control methods of the foreign exchange ea trading system. Risk control is the lifeline of foreign exchange transactions and is always the first line of defense that foreign exchange traders should pay attention to. In the foreign exchange market, you can make money by living.