Profit from trends! The "Average EA" for single-position scalping
Up to 48 entries per day with a single position!
An 'Average EA' that steadily builds profits with ultra-tight profit targets of 2 pips or less
■ Up to two entries per hour with a maximum of one open position
In scalping, it's common to take multiple positions with small lots, but
What we will introduce this time is 「a rare type of scalping EA that has only one position but many trades」, a rare type of scalping EA.
Trend following + up to two entries per hour and time restrictions
Thus, it features a substantially higher number of entries than a typical one-position EA.
Weekly average number of entries: 30
Monthly average number of entries: 158
This yields an ample number of entries, averaging about 5–6 trades per day.
■Profit-taking methods unique to the EA
Scalping EAs often aim for a few pips, and this Average EA does the same,
It follows the trend to quickly skim profits by riding the trend.
【Actual entry examples here】
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Entries are taken only in the direction of the trend, taking small profits and re-entering again.
Additionally, the stop-loss width varies by position, which is notable.
It captures trend reversals well.
Looking at the chart, you might wonder, why enter at the high point of such a trend peak!?
You might think so, but the take-profit is only 1–2 pips, so it is closed quickly, which makes it fine.
Additionally, there are three stop-loss rules; if any are triggered, the position is closed.
1) If a position is held for more than 24 hours, forced closure.
2) If the account drawdown exceeds 22%, forced closure.
3) Stop loss determined by a proprietary function (dynamic).
It's not a fixed stop-loss in pips, but because (2) exists, even during sharp market movements the maximum loss stays at 22%.
Additionally, by varying the stop-loss width by position, unnecessary stops are avoided and win rate is increased.
■Average gained pips are less than 2 pips!
On Oanda Forward, average gained pips: 1.3 pips which is hard to achieve with discretionary trading
This is how profits are taken.
The loss in pips isn't fixed, so the relationship between win rate and profit amount is hard to gauge, but in a very strict environment
you can see profits and losses being realized.
■Spread of the trading account is crucial!
Because the number of trades is high and the pips gained per trade are small, when operating
the spread of the trading account becomes the most important factor.
Even a difference of 0.1 pips can make a significant difference in performance.
A round-trip changes the amount by 0.2 pips times the number of lots,
For 100,000 currency units, that’s about 200 yen, but since you trade more than 100 times per month,
this difference accumulates to tens of thousands of yen.
Currently recommended are
OANDA, Gaitame Finest, and Rakuten FX MT4.
All offer USD/JPY spreads of 0.3–0.5 pips, the minimum among Japanese MT4 accounts.
Of course there are times when spreads widen, but
do not enter if spreads are 0.5 pips or more; a filter is applied.
In that sense, there are cases where entries occur in backtests but not in forward tests,
and this happens quite often.
Backtest and forward-test profitability may differ somewhat.
■Compounding feature that keeps risk in check
(Leverage 10)
With leverage 5, +21% in 5 months, maximum drawdown 1.53%
With leverage 10, +48% in 5 months, maximum drawdown 3%
And even with leverage 10, drawdown remains quite low!
In fx-on forward testing, the maximum drawdown is 54,900 yen, higher than the assumed value, but
for a 1,000,000 yen account that's 50,000 yen — about a 5% drawdown in practice.
Backtests are indicative, but even with maximum leverage, the risk of account ruin is
quite low, indicating a safe design.
As a scalping EA, it presents an interesting concept,
achieving low margin with a single position while maximizing the number of trades.
‘AVERAGE_EA
25,000 Yen
