[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 many responses to the previous forward test article of “SIMSONIC.”
This time, as the second verification, we fully automate the popular indicator with a reputation for explosive power, “Pursuit of the Sun Wheel,” using my listed EA “Loop-Turnaround_EA” and conducted a forward test that would flip long and short on the Nikkei 225 (1-minute chart) at a domestic broker (Rakuten Securities CFD) for about two weeks.
This time, we will not only reveal the good points but also openly disclose the realistic hell of EA operation (a losing streak).
■ Abnormal early speed on Day 3 and the reason for not publishing it
In fact, just three days after activation (as of 4/18), this EA achieved an astonishing start: net profit of +147,441 yen and a profitability factor (PF) of 2.95.
I wanted to publish “It’s a money-making EA!” right away, but I deliberately restrained from posting.
Because with only three days of data, it was impossible to deny the possibility that it was merely luck.
To truly measure its ability, we continued running the indicator on EA in a volatile market for one more week.
■ Then came the “Devil’s 11 consecutive losses”
As expected, the market was not kind.
Entering the second week, the market and the logic stopped meshing, resulting in a very painful drawdown of 11 consecutive losses.
With discretionary trades or martingale EAs, this would have crushed the mindset or your account would have been liquidated (out of the game).
However, please look at the latest data as of 4/25, two weeks later.
【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” after 11 consecutive losses?
If the win rate drops to around 30% and you have 11 straight losses, how can the account still remain not bankrupt and show more than +80,000 yen in profit?
The answer lies in the thorough “loss-cutting with profit-targeting to the maximum” approach.
When we break down the data, the EA’s average profit per trade is as follows.
・Average profit: +40,942 yen
・Average loss: -16,085 yen
In other words, the system is set so that one win covers about 2.5 losses.
Therefore, no matter how many consecutive losses occur, the maximum drawdown is kept to merely 3.16% of funds. “Lose small when losing, maximize profits when a trend appears.”
Continuing to execute this investment principle mechanically, without any emotion, leads to this durability and profitability.
■ Summary: The true value of full automation
What this test proves is the reality that even the most excellent indicator can have losing streaks, and that remaining unfazed by those losses and continuing to cut losses automatically (EA) is the only path to ultimately keep profits.
With the original EA I developed, you can turn your own indicator signals, such as “Pursuit of the Sun Wheel,” into a “cold, emotionless machine” in just one minute.
Why not test your own indicator’s true durability?
▼ Turn your indicator into a complete sell-and-hold EA! ‘Loop-Turnaround_EA’