GBP/JPY 1-position EA 'Blue Rose' that gained +1400 pips in six months of forward testing

+1,400 pips gained in six months forward! GBP/JPY single-position EA 'Blue Rose'

This EA has been performing particularly well since the end of 2019 and shows high potential in the current market.

◆ Blue Rose GBP/JPY System Overview

This is a single-position EA operated on the GBP/JPY 1-hour chart.
The maximum stop loss is tight at 50 pips, while the take profit can be as high as 650 pips, making it a small-loss, large-profit design.
In actual forward testing, average winning pips are 71 pips and average losing pips are 35 pips, resulting in an ideal risk-reward ratio.

◆ Forward Performance

▲ 2019 performance. About six months of operation yielded around +1,000 pips!

▲ Performance through January 8, 2020. Already +400 pips gained and a strong start in January.

◆ Backtest Analysis

Since the official backtest covered only two years, I conducted backtests over seven years.

The markets where it excels and struggles were clearly shown.

▼ Yearly P/L, PF, number of trades, win rate

In bar charts, it looks like this.
There are years when 3,000 pips are gained in a year, and years when 3,000 pips are lost...
There's not much point in averaging, but on average there is a potential of +986 pips per year.

▼ Trade Image

Red: SELLBlue: BUY

It's quite interesting; it alternates between buying and selling (not a simple do-nothing but not simple reverse martingale).
The stop loss isn't fixed but decided by logic, so it's variable, but the maximum SL is 50 pips, and it cuts losses quickly,
and in scenarios where it can run, it lets profits grow.

When calculating the expected profit and the recommended margin for the last seven years,

Recommended margin for 0.1 lot trading
(550) + (4058 × 2) = 8666 (about 900,000 yen)
Annual average expected profit: 986 USD (about 100,000 yen)
Expected annual return: 11%

That’s what it looks like.

This EA is suited to recent market conditions, so if you use the last two years as a guide, the expectation will differ, and
annual returns of over 100% can be achieved soon.

◆ A windfall, or…

It is rare to achieve around 3,000 pips per year with a single position,
but if used wisely, this EA seems set to perform very well!

The key point is perhaps the win rate. Even with a 41% win rate, it still yields ample profit, but
if it drops into the 30% range it's risky, and below 30% it may be better to reduce the lot size or halt usage.

To check the win rate and PF during the period, using tools such as 'Profit/Loss graph at a glance!' can help you operate with more confidence.

▼Blue Rose GBP/JPY

Written by Tera GogoJungle Marketing.