Even with simple interest, an annual rate of +40%, and with compound interest, an astonishingly upward trend for 『Flashes for USDJPY』
1-position USD/JPY scalping!
【Flashes for USDJPY Overview】
Currency pair：[USD/JPY]
Trading style：[Day trading][Scalping]
Maximum positions: 1
Timeframe used: M1
Maximum stop loss: 100 Others: variable
Take profit: 100 Others: variable
Forward 4 months: +28% increase!
Realized P/L +170,000 JPY; maximum drawdown 85,000 JPY; and the risk-reward ratio is also good!
From backtests, let's look at annual expected P/L and risk
【Backtest Analysis】
In official backtest, using 1.0 (fixed 100k currency), spread 5 (0.5 pips),
Backtest period 2009.1.05～2017.10.14
over about eight years,
Total trades: 2,672 (annual average 300+)
1,000,000 JPY⇒5,120,000 JPY (net profit 4,120,000 JPY)
Maximum drawdown 190,000 JPY
Win rate 69%
This is how it stands.
Since this is scalping, what matters is the average earned pips.
Average winning amount is 6,100 JPY; average losing amount is -9,100 JPY, therefore,
Average winning pips is about 6 pips, average losing pips is about 9 pips.
With this level, even an account with about 1 pip wider spread could be profitable..
Backtest by spread, compounding results
【Spread 0.5 pips, Simple interest 1.0 lot, 2012-2016 five-year backtest】
【Spread 1.0 pips, Simple interest 1.0 lot, 2012-2016 five-year backtest】
Difference due to spread 0.5 pips results in about 700,000 JPY over five years.
【Spread 0.5 pips Compounded risk 1.0 (per 1,000,000 JPY account, 100,000 units)】
Five years: 1,000,000 JPY ⇒ 7,900,000 JPY (net profit 6,900,000 JPY)
Maximum drawdown also 13% of account balance, relative drawdown 16%, a comfortable risk.
【Monthly profit/loss】
There are no negative annual profits, and with compounding it keeps increasing, which is scary… lol
【Fixed 100,000 units (Spread 0.5)】
【Compounded risk 1.0 (Spread 0.5)】
Is there any reason not to use compounding?!
Even with simple interest,Safe risk range around +40% annualis wonderful.
This is a scalping EA you'd definitely want to operate on a low-spread, high-execution account!
