[Verification Round 2] Popular indicator "Chasing Day Ring" fully automated reverse forward test! Astonishing data released after surviving 11 consecutive losses
Hello, this is Jerusalem.
Thank you for the numerous responses to the forward test article of the previous “SIMSONIC.”
As the second verification installment, we automated fully with my listing EA “Loop-Turnaround_EAPursuit of the Sun Wheel” using the popular indicator known for its explosiveness, “,” and conducted a forward test on the domestic broker (Rakuten Securities CFD) “Nikkei 225” (1-minute chart) continuing to flip (turn) for about two weeks.
This time, we will not only disclose the good points but also the real hell of EA operation (the losing streak) without concealing it.
■ The abnormal rapid start on day 3 of operation, and the reason for not publishing it
In fact, just 3 days after start of operation (as of 4/18), this EA posted an astonishing start: net profit +147,441 yen, Profit Factor (PF) 2.95.
I wanted to publish it as “an EA with explosive gains!” immediately, but I deliberately held back.
The reason is that with only three days of data, there is a possibility that it was merely lucky.
To truly measure its ability, I continued running the indicator with the EA in turbulent markets for another week.
■ Then came the “Dreaded 11 Losses in a Row”
As expected, the market was not kind.
When the second week began, market conditions and the logic no longer meshed, resulting in an extraordinarily painful drawdown of 11 consecutive losses.
With discretionary trading or averaging-down EAs, this would have collapsed the mental state or blown the account via a stop-out (expulsion).
However, please look at the latest data (as of 4/25) after two weeks.
【Pursuit of the Sun Wheel × Nikkei 225 Performance Report (about 2 weeks)】
・Number of trades: 48
・Win rate: 31.25%
・Net profit: +83,328 yen
・Maximum drawdown: 3.16%
■ Why is there still “profit” even after 11 losses?
With the win rate dropping to around 30% and 11 consecutive losses, why does the account not blow up and still retain more than +80,000 yen in profit?
The answer lies in the “perfect small losses, large gains” principle.
When the data is analyzed, the average profit per trade for this EA is as follows:
・Average profit: +40,942 yen
・Average loss: -16,085 yen
In other words, one winning trade covers about 2.5 losing trades.
Therefore, no matter how many losses in a row, the maximum drawdown stayed at only about 3.16% of funds. “Lose small when losing, maximize profits when a trend appears.”
Continuing to execute this investment principle mechanically, without any emotion, led to this durability and profitability.
■ Summary: The true value of full automation
What this test proves is the fact that even the most excellent indicator will inevitably have losing streaks, and that the only path to ultimately preserve profits is to stay emotion-free and automatically (EA) cut losses and follow the rules during those losing periods.
Using the original EA I developed, you can transform signals from your indicators, such as “Pursuit of the Sun Wheel,” into a “cold, emotionless machine” in one minute.
Would you like to test the true durability of your own indicators?
▼ I will completely flip your indicator into an EA! “Loop-Turnaround_EA”