Discovery! High-precision entry! Hidden gem EA Cygnus USDJPY
There are many veteran EA traders who check how the EA product pages are written and their content to decide whether to use them, in parallel with their performance results, but to meet the needs of such people, the EA Cygnus USDJPY M5 Cygnus USDJPY M5 will be introduced today by performing backtests, etc.
Cygnus USDJPY M5 is an EA for USD/JPY on the 5-minute chart.
The product page states that it prioritizes easy risk management even with high-lot trading, with one position and no hedging.
Backtest results over seven years or more (backtesting results since March 7, 2012)
Starting with a $10,000 margin, the maximum drawdown was $332.05 (3.26%), a very small drawdown and indicates easy risk control.
The developer MT Lightning explained that the logic isn't about calculating trend angles using multiple moving averages as is common with scalper-type EAs; instead, it uses a mid-term MACD and a short-term Bollinger to confirm the general direction on the daily chart while trading on the 5-minute chart.
Also, as stated on the product page, there is a take-profit value of 20 pips, the stop-loss setting is 100 pips, and when the profit width reaches 20 pips, a trailing stop is triggered to extend the profit.
I was concerned that the stop-loss setting is wide, but the developer said, 'In most cases of stop losses, after entry, if a reverse-direction trend occurs, that trend tends to pause briefly and retrace a little, and that is where the stop loss is set.'’That was the developer's comment.
In fact, in our backtests, losses of 100 pips due to the stop loss occurred only a few times.
This EA is clearly targeting entries at highly precise points that can win, but in the article“Honestly, How to Choose a Good EA?”, there are five points for selecting an EA.
- Forward results have accumulated to some extent, and the graph is upward.
- Low drawdown (not averaging down, not martingale).
- PF (Profit Factor) 1.5 or higher
- Risk-return ratio = Total profit ÷ Maximum drawdown
- Risk-reward ratio = Average profit ÷ Average loss
Let's review them accordingly.
1. Forward results have accumulated to some extent and the graph is rising; as shown in the image below, performance measurement began on November 12, 2019, so this cannot be considered sufficient.
Performance measurement (started November 12, 2019)
2. Low drawdown not including averaging down or martingale; the maximum drawdown is $332.05 (3.26%), and since there is always one position, this criterion is satisfied.
3.PF (Profit Factor) 1.5 or higher — it clearly exceeds this with a value of 1.75.In the article“Honestly, How Do You Choose a Great EA?”In that article, it says that 1.5–2.0 is just right, so this is a good figure.
4. Risk-return ratio = total net profit ÷ maximum drawdown; it was 14.77, calculated as total net profit $4,905.71 ÷ maximum drawdown $332.05.
The risk-return ratio is, as a rule of thumb, 2.0 or higher, so 14.77 is an outstanding performance.
Risk-reward ratio = average profit ÷ average loss is 1.29, with average profit 16.14 pips ÷ average loss 12.46.
The risk-reward ratio being 1 (average profit equals average loss) and a win rate of 50% or more would leave profits, but with a backtest win rate of 57.46% and a risk-reward ratio of 1.29, it can be considered an impeccable result. リスクリワードレシオ1.29ということですので、申し分のない結果と言えます。
The developer also said they would like to improve the relatively small number of trades, but trading by narrowing down to high-precision entry points is the standard approach in discretionary trading.
I think there is an idea to operate with higher lots while watching the capital and the lot size.
Written by Hayakawa
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