Annual average profit with multiple positions ¥280,946, maximum loss of ¥100,000, and a high win rate, popular Premia_Scal_USDJPY_M1

Articlethe mysterious Premia_Scal_USDJPY with 100% live operation rate despite 20 morning scalping positions and 221 purchases, as of July 19 when this was written, the number of purchases was 221 units, with 221 units active in real accounts and a 100% operation rate, but as of today, the number of purchases is 645 units andPremia_Scal_USDJPY_M1 has become an even more popular EA.

The reason for its popularity is that, while it rarely increases its positions up to a maximum of 20, based on TDS’s 17-year backtest, with multiple positions it makes an average of 944 entries and closures per year, and with 0.1 lot trades it yields an average annual profit ¥280,946 as indicated by the 85.67% win rate, there are few cases where the pain of stop-loss is felt.

There is a stability in which, apart from 2008 and 2011, there has never been an annual overall loss.

Also, while holding multiple positions may resemble averaging down, since each position’s maximum stop-loss is 50 pips, a 0.1-lot trade can incur a maximum loss of ¥100,000 per trade, and even in 0.01-lot (1,000 units) trades it is limited to ¥10,000.

　The calculation formula for the recommended margin (based on 25x leverage) used in GogoJungel’s system-trade performance measurement is

10,000 currency units × the exchange rate of the traded currency in Japanese yen ÷ 25× × average number of lots ÷ 0.1 × maximum number of positions + maximum loss (using the backtest’s maximum drawdown)×2

therefore,

￥1,043,000（today’s rate）÷25×平均ロット数÷0.1×20ポジション　＋　￥344,410（最大ドローダウン）×2

The recommended margin is,￥1,523,220.

Here, the listedmaximum drawdown￥344,410 is calculated as the scenario where a loss of up to ¥100,000 occurs in a single 0.1-lot trade for three or more consecutive trades, but this occurred only once in 17 years of backtesting, so the recommended margin ¥1,523,220 can be considered a safe line.

　Premia_Scal_USDJPY_M1, with a stop-loss within 50 pips and a logic to accelerate profit accumulation by using multiple positions, is a solid strategy, and I can understand why it would be popular.

Written by Hayakawa