There are EAs everywhere in the Chinese market. Good one or two months of profitability, and the bad one, the position is liquidated. Some EA team developers have not done real trading themselves or have not had stable profits for more than 5 years. , The developed strategy is even less likely to be stable and profitable. Even if the developed strategy, there is no strong team to modify the parameters according to the market.
The modification of EA’s strategy parameters must be operated on a real account, not a simulation or historical review, because EA will eventually be used in actual operation, and real funds must be used to test the degree of risk of the parameters. Simulation does not have this mentality. It can’t be tested, and this requires a lot of funds to support the modification of the EA model parameters, which is not affordable for ordinary individuals or small teams.
Friends who have done foreign exchange transactions should know that if you want to continue to make profits, you should have your own trading strategy. If the investment trader is a person who has no execution but wants to have EA software instead of manual ordering, then you also need a good one Strategies to support investment traders’ EA software. There are many types of EA on the outside market, but how much do investment traders know about foreign exchange EA? How much do you know about the strategies used by Forex EA? Today I will discuss with you the following EA software strategy issues
Martin is actually a gambling strategy. After each loss, the gambler will double his bet. Therefore, as long as he wins once, he can win back the entire amount of the previous loss, and will also win an amount equal to the initial principal. Martingale strategy is to open a position in one direction, even if it loses, it will continue to increase the position until the market reverses. Therefore, if the trader uses the martingale strategy, it is very important for the trader’s deposit.
How important is EA risk control?
Some people in the market mentioned Martin EA, and most of them avoided it. They believed that Martin’s final result was a liquidation, because he bucked the trend and increased his position. Once he encounters that kind of large unilateral trend, he will definitely not resist. Yes, unless the amount of funds is particularly large. I think that these people’s understandings cannot be wrong, but there is a certain deviation. There is no EA suitable for any market in the market, and there is no ideal strategy that meets the expectations of all traders. It is more appropriate to take care of this and lose the other. After doing a good job in risk control and mastering certain risk control methods, no matter what strategy it is, the ideal effect can be achieved.
For the vernacular of risk control, there are a few points
- Sufficient margin plus light storage to enter the battle
Whether it is manual operation or intelligence, sufficient margin will definitely enhance the anti-risk ability of the account, and there is more room for operation. Light positions are more convenient to deal with. Generally, it is recommended to control the position at about 20% of the principal. The position weight must be manually intervened. There is no EA that automatically overweights the position. Once the market is irreversible and is not processed in time, it must be Faced with a liquidation, unless you keep adding money to alleviate your urgent needs.
- Set stop-profit and stop-loss in advance
It’s okay to use this sentence in transactions if everything is pre-established, and not established. In the process of EA automatic trading, manual intervention is inevitable. After placing an order, you must set the stop profit and stop loss to avoid being tired of waiting for the market. The more you lose, the more you lose; the EA is closed or the EA is disrupted when encountering inappropriate market conditions. After the strategy, you can also set the stop profit and stop loss for the EA order. Special attention is paid to take profit. Many people have the experience and ability to avoid the risk of floating losses in the process of trading Expert Advisors, but they often die of greed.
- Lighten up
In the process of trading, the most we say is to lighten up the position. I have to say that when the EA is running well, no manual intervention is required. However, once the loss is too large, then all the losses will be stopped. Most people still can’t accept it. Therefore, lightening has become the choice of most people. One of my favorite ways to lighten up is to reduce a part of each order, which will not affect the operation of the EA, and it can also be combined with a certain manual intervention. People die because of a lot of talk, and accounts die from a lot of accounts.
- Close EA early
The market is unpredictable, but technicians are required to make a basic prediction of the market and technical aspects. Martin EA is most afraid of the large unilateral market. When you predict that the market is not suitable, you must close the account in advance. The most important thing in the foreign exchange market is survival, and then profit.
- When the amount of funds is large, do not put all the funds in one account, you can divide them into several accounts and use different strategies respectively
What are the unique strategies of Forex EA?
- Excellent strategies can be applied to different varieties
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 Used in a variety of markets; currently there are many strategy 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.
- The instability of a single strategy
Multi-strategy combination 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. The trading market is in the process of random fluctuations 70% of the time, and only 30% of the market has a clear trend. Some large-scale trends may even appear once every few years. Trends and shocks. It is 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 editors can grasp 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.
- Do not do grid, do not do add position and anti-order strategy
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.
- 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. A total of 11 currency pairs are traded in trend strategy trading varieties: direct trading: EURUSD (Europe and the United States), AUDUSD (Australia-US), USDCAD (US-Canada), USDJPY (US-Japan) Cross trading: GBPJPY (pound-day), GBPAUD (pound-Australia) )