When we learn to do things, doing things efficiently is the next step to pursue. Automation is a way of doing things efficiently. For example, factories use automation equipment to achieve efficient production; housewives use automated smart kitchen utensils to achieve efficient life.
For all investors, automatic trading is also an inevitable trend. More and more people are using EA for automatic trading.
What is the difference between EA trading and manual trading? How is the profitability? Today we will share with you the EA trading experience of two traders, hoping to inspire you.
EA trading without technical indicators
Drazen Ziskovic has used EA trading for more than ten years, and has achieved stable profits with EA. One of the EA trading systems has a total net profit of 193,000 and a total number of transactions of 879. His EA is based on two principles. The first principle is time, which refers to fixing the trading time according to the trading direction of the current active period. The second principle is to trade based on chart patterns, price volatility, overbought and oversold.
When testing the EA, there was a 240-point shrinkage. In order to reduce the decline, Drazen increased the operation of checking the market 6 times a day. He also pays special attention to fund management issues, and the leverage in real transactions does not exceed 15 times.
But at the beginning of the transaction, market risks were ignored, and 2 accounts were destroyed within 2 weeks, and in the previous 3 years of trading, similar situations occurred 8 times in total. Later, I realized that fund management is the criterion for successful trading, and each transaction must set the maximum loss that can be borne.
In EA trading, Drazen will set fixed stop loss and take profit according to market volatility. For example, during the period of high volatility in the European market and the US market, the stop loss level of 31, 34, 40 or 46, and the level of 61, 99, 150, and 160 are set. take profit level. During the period of low volatility in the Asian market, set 49, 54 stop loss positions, 20, 42 take profit positions.
If the market does not reach the take profit and stop loss positions, the transaction will be closed according to the transaction time. For example, a transaction starting at 8:00 will end at 12:55, a transaction starting at 13:00 will close at 22:55, and a transaction starting at 23:00 will end at 2:55.
When entering the market, Drazen did not use any technical indicators, because the test results with MT4 indicators were not satisfactory. It is mainly based on K-line patterns, Fibonacci tools, and chart patterns such as head and shoulders, symmetrical triangles, rectangles, etc., and also refers to trading hours. For example, sell EUR/USD during European and American trading hours, and buy EUR/USD during Asian trading hours.
The above is Drazen Ziskovic's short EA trading sharing, from which we can see that risk management is the most important regardless of manual trading or automatic trading.
EA Championship winner traded for only 1 year
Michael Mayson didn't try trading with EA for a long time, but he won the EA Championship. He attributes his success to setting EAs with relatively low risk. Many EAs are risky, and Michael only sets the risk of each transaction to 5% of the account balance.
His priority when setting up EA is long-term stable profitability, even measured in units of years. Not only consider the risk of market fluctuations, but also prevent the communication delay of the transaction server.
Michael most often trades GBP/USD in a 1-hour cycle, and the GBP/USD fluctuates greatly, so he pays special attention to the EA stop loss strategy, uses ATR and ADX to measure the market volatility level, and ensures that the EA transaction success rate is greater than 60%.
The oscillating trend is the normal state of the market. Michael's trading system is used in the oscillating trend. The analysis tool he often uses is also the K-line form.
The difference is that he did not set a take-profit strategy, but used the reverse transaction to hedge and close the position. In his EA system, this effect is even better.
In fact, Michael Mayson's EA trading time is only one year, and he has not researched better technical indicators. But based on your own trading plan and principles, you can also get good returns.
The above is today’s sharing. EA trading is not as advanced as we imagined. If the attention in manual trading is done well, it will be smoother in EA trading.
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