Why People Who "Try to Recover Losses" in "FX Automated Trading" Fail More... The "Reverse Thinking" to Protect Your Assets
Phoenix Connect points out that "trying to recover losses" is the biggest risk in FX automated trading, and introduces "Phoenix PRO," an EA that pursues stable operation by completely automating entry, take profit, stop loss, and fund defense to eliminate emotional decisions.
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- 📰 Published: April 5, 2026 at 05:20
[Phoenix PRO] Japan's original Span Model EA | An automated trading EA pursuing "reproducibility of stable operation" by realizing automated take profit × automated stop loss × fund defense in MT4 automated trading.
"FX Automated Trading" is widely recognized as a means to streamline asset management. EA (Expert Advisor) utilizing MT4 enables trading unswayed by emotions, and an increasing number of individual investors are aiming for reproducible operations.
However, in reality, there are many cases where "people collapse trying to recover from a single loss" or "performance deteriorates rapidly when things go wrong." Behind this problem lies "a certain behavior" that many people do unconsciously.
"Trying to Recover" is the Biggest Risk
When a loss occurs in trading, many people think like this:
- Let's recover it next time
- I want to increase the lot size and recover it quickly
- Let's be more aggressive than usual
This behavior may seem rational at first glance, but in reality,
it becomes the most dangerous trigger that expands losses.
Why the "Trying to Recover" Behavior Fails
The reason is that the judgment criteria change.
Normally,
you should only enter when the conditions are met,
but
you force yourself to enter to cover the loss.
In other words,
it changes from "trading following rules" to "trading following emotions."
The Role of FX Automated Trading is "Blocking Emotions"
FX automated trading exists to solve this problem.
Its essence lies in
eliminating emotional decision-making and enforcing rules.
- Following the rules even if a loss occurs
- Judgment does not change even if there is a losing streak
- Continuing consistent behavior
This creates reproducibility.
However, There are Cases Where Even Automated Trading Collapses
What is important here is that
not all automated trading has realized "emotion elimination."
For example, in a design where:
- Only entry is automated
- Take profit and stop loss are discretionary
- Fund management is optional
ultimately, human judgment intervenes, and the same problem occurs.
What is Needed is the "Fixation of the Entire Trade"
To achieve stable operation, it is necessary to fix everything as consistent rules:
- Entry
- Take profit
- Stop loss
- Fund management
"Phoenix PRO" by Phoenix Connect was designed based on this concept.
"Emotion-Free Operation" Realized by Phoenix PRO
Phoenix PRO is an FX automated trading system that structures the entire trade based on Japan's original Span Model.
Its feature lies in a design that eliminates the "room to try to recover."
Preventing Forced Trading by Restricting Entries
■ 3-Condition Match Rule
- Lagging Span (Chikou Span)
- Cloud (Span Model)
- Background Bias
Since it will not enter unless these conditions are met,
- Entry out of impatience
- Forced trading
will not occur.
Fixation of Take Profit and Stop Loss Judgments
■ Take Profit: Rikaku Histogram
Visualizes the momentum of the market and detects the peak.
■ Stop Loss: Cloud Breakout Standard
Automated stop loss based on the Span Model.
This prevents:
- Hesitation in taking profit
- Procrastination of stop loss
Eliminating the "Need to Recover" Through Fund Management
■ Defense Functions
- Entry Guard
- Margin Saver
By preventing large losses and keeping them within a recoverable range, the idea of "trying to recover" itself becomes unnecessary.
"Not Trying to Recover" Leads to Winning
What is important in investing is
not recovering losses, but controlling losses.
- Keep losses small
- Accumulate profits
- Repeat this
This structure supports long-term asset growth.
FX Automated Trading Enters the Era of "Behavioral Control"
Until now, automated trading has focused on:
- How high the accuracy is
- How much profit can be made
However, currently,
"How much unnecessary behavior can be prevented"
has become an important theme.
Summary... Those Who Can Win "Do Not Try to Recover"
Whether you can get results with FX automated trading depends not only on
the excellence of the logic
but also on the
consistency of behavior.
If you feel that:
- You try to recover your losses
- Trading collapses due to emotions
- Performance is not stable
then you need to review it from the perspective of a "design that does not try to recover."
Phoenix PRO can be said to be one solution, an "FX automated trading system that eliminates emotions and realizes reproducible operation."
➡[Phoenix PRO] Japan's original Span Model EA | An automated trading EA pursuing "reproducibility of stable operation" by realizing automated take profit × automated stop loss × fund defense in MT4 automated trading.
https://www.phoenixconnect.jp/Phoenix_PRO
* This article is for informational purposes only and does not recommend specific investment actions. Please make your final investment decisions at your own risk.
■ Author Profile
Yasuyuki Takiuchi
Representative of Phoenix Connect Co., Ltd. / AI Trading Strategist
He has a career crossing engineering, strategy, and data science, including aviation, heavy industry, foreign consulting, tech companies, and AI research. He started his career as an aircraft engineer at Japan Airlines (JAL) and then experienced being stationed in New York at Kawasaki Heavy Industries (KHI). Through practical business in a global environment, he cultivated a foundation for structural thinking and quantitative analysis.
After that, he engaged in business improvement and strategy design at a foreign consulting firm, establishing a logical approach to complex business issues. Furthermore, he gained practical experience in AI machine learning, data analysis, and programming areas at Meta (formerly Facebook), a US NASDAQ-listed company, deepening his analytical skills that integrate technology and data.
In the investment world, he started trading in 2004. Initially, he experienced a cumulative loss of over 60 million yen due to discretionary judgment. Prompted by this experience, he concluded that "reproducibility cannot be obtained with emotion-dependent investments," and after integrating fundamental analysis, supply and demand analysis, and technical analysis, he began research on probabilistic market analysis by AI.
As a result, he developed an AI model that integrates multidimensional data from the Tokyo Stock Exchange and the Bitcoin market, presenting the upward probability, downward probability, and assumed price range for the next business day as the "Tomorrow's Nikkei Average Forecast AI". Currently, he is operating and researching a "reproducible investment judgment support model" in which AI continuously learns and evolves.
Under the philosophy of "Reading the market with structure, not emotion," he aims to establish a "reproducible investment strategy" that even individual investors can practice, and is working on information dissemination and investment support.
Phoenix Connect Co., Ltd.
An independent asset building consulting firm that supports the reproducibility of investment decisions through AI × strategic analysis.
It has an overseas base in Kuala Lumpur (Malaysia) and provides analysis and services based on global market data.
https://www.phoenixconnect.jp/
"FX Automated Trading" is widely recognized as a means to streamline asset management. EA (Expert Advisor) utilizing MT4 enables trading unswayed by emotions, and an increasing number of individual investors are aiming for reproducible operations.
However, in reality, there are many cases where "people collapse trying to recover from a single loss" or "performance deteriorates rapidly when things go wrong." Behind this problem lies "a certain behavior" that many people do unconsciously.
"Trying to Recover" is the Biggest Risk
When a loss occurs in trading, many people think like this:
- Let's recover it next time
- I want to increase the lot size and recover it quickly
- Let's be more aggressive than usual
This behavior may seem rational at first glance, but in reality,
it becomes the most dangerous trigger that expands losses.
Why the "Trying to Recover" Behavior Fails
The reason is that the judgment criteria change.
Normally,
you should only enter when the conditions are met,
but
you force yourself to enter to cover the loss.
In other words,
it changes from "trading following rules" to "trading following emotions."
The Role of FX Automated Trading is "Blocking Emotions"
FX automated trading exists to solve this problem.
Its essence lies in
eliminating emotional decision-making and enforcing rules.
- Following the rules even if a loss occurs
- Judgment does not change even if there is a losing streak
- Continuing consistent behavior
This creates reproducibility.
However, There are Cases Where Even Automated Trading Collapses
What is important here is that
not all automated trading has realized "emotion elimination."
For example, in a design where:
- Only entry is automated
- Take profit and stop loss are discretionary
- Fund management is optional
ultimately, human judgment intervenes, and the same problem occurs.
What is Needed is the "Fixation of the Entire Trade"
To achieve stable operation, it is necessary to fix everything as consistent rules:
- Entry
- Take profit
- Stop loss
- Fund management
"Phoenix PRO" by Phoenix Connect was designed based on this concept.
"Emotion-Free Operation" Realized by Phoenix PRO
Phoenix PRO is an FX automated trading system that structures the entire trade based on Japan's original Span Model.
Its feature lies in a design that eliminates the "room to try to recover."
Preventing Forced Trading by Restricting Entries
■ 3-Condition Match Rule
- Lagging Span (Chikou Span)
- Cloud (Span Model)
- Background Bias
Since it will not enter unless these conditions are met,
- Entry out of impatience
- Forced trading
will not occur.
Fixation of Take Profit and Stop Loss Judgments
■ Take Profit: Rikaku Histogram
Visualizes the momentum of the market and detects the peak.
■ Stop Loss: Cloud Breakout Standard
Automated stop loss based on the Span Model.
This prevents:
- Hesitation in taking profit
- Procrastination of stop loss
Eliminating the "Need to Recover" Through Fund Management
■ Defense Functions
- Entry Guard
- Margin Saver
By preventing large losses and keeping them within a recoverable range, the idea of "trying to recover" itself becomes unnecessary.
"Not Trying to Recover" Leads to Winning
What is important in investing is
not recovering losses, but controlling losses.
- Keep losses small
- Accumulate profits
- Repeat this
This structure supports long-term asset growth.
FX Automated Trading Enters the Era of "Behavioral Control"
Until now, automated trading has focused on:
- How high the accuracy is
- How much profit can be made
However, currently,
"How much unnecessary behavior can be prevented"
has become an important theme.
Summary... Those Who Can Win "Do Not Try to Recover"
Whether you can get results with FX automated trading depends not only on
the excellence of the logic
but also on the
consistency of behavior.
If you feel that:
- You try to recover your losses
- Trading collapses due to emotions
- Performance is not stable
then you need to review it from the perspective of a "design that does not try to recover."
Phoenix PRO can be said to be one solution, an "FX automated trading system that eliminates emotions and realizes reproducible operation."
➡[Phoenix PRO] Japan's original Span Model EA | An automated trading EA pursuing "reproducibility of stable operation" by realizing automated take profit × automated stop loss × fund defense in MT4 automated trading.
https://www.phoenixconnect.jp/Phoenix_PRO
* This article is for informational purposes only and does not recommend specific investment actions. Please make your final investment decisions at your own risk.
■ Author Profile
Yasuyuki Takiuchi
Representative of Phoenix Connect Co., Ltd. / AI Trading Strategist
He has a career crossing engineering, strategy, and data science, including aviation, heavy industry, foreign consulting, tech companies, and AI research. He started his career as an aircraft engineer at Japan Airlines (JAL) and then experienced being stationed in New York at Kawasaki Heavy Industries (KHI). Through practical business in a global environment, he cultivated a foundation for structural thinking and quantitative analysis.
After that, he engaged in business improvement and strategy design at a foreign consulting firm, establishing a logical approach to complex business issues. Furthermore, he gained practical experience in AI machine learning, data analysis, and programming areas at Meta (formerly Facebook), a US NASDAQ-listed company, deepening his analytical skills that integrate technology and data.
In the investment world, he started trading in 2004. Initially, he experienced a cumulative loss of over 60 million yen due to discretionary judgment. Prompted by this experience, he concluded that "reproducibility cannot be obtained with emotion-dependent investments," and after integrating fundamental analysis, supply and demand analysis, and technical analysis, he began research on probabilistic market analysis by AI.
As a result, he developed an AI model that integrates multidimensional data from the Tokyo Stock Exchange and the Bitcoin market, presenting the upward probability, downward probability, and assumed price range for the next business day as the "Tomorrow's Nikkei Average Forecast AI". Currently, he is operating and researching a "reproducible investment judgment support model" in which AI continuously learns and evolves.
Under the philosophy of "Reading the market with structure, not emotion," he aims to establish a "reproducible investment strategy" that even individual investors can practice, and is working on information dissemination and investment support.
Phoenix Connect Co., Ltd.
An independent asset building consulting firm that supports the reproducibility of investment decisions through AI × strategic analysis.
It has an overseas base in Kuala Lumpur (Malaysia) and provides analysis and services based on global market data.
https://www.phoenixconnect.jp/
FAQ
What is Phoenix PRO?
It is a Span Model-based FX automated trading (EA) system that eliminates emotional judgments and applies consistent rules from entry to settlement and fund management.
Why do people fail in FX automated trading?
Because they become emotional trying to recover losses and force trades by ignoring the rules.
What are the defense features of Phoenix PRO?
Fund management features like Entry Guard and Margin Saver that prevent large losses and keep them within a recoverable range.