Swing EA that makes big profits in a major market『Flame Angel USDJPY M5』
Forward 6 months, return +62%
USDJPY swing EA with a risk-reward ratio of 2.6
'Flame Angel USDJPY M5'
【EA Overview】
Currency pair:[USD/JPY]
Trading style:[Swing trading]
Maximum positions: 2; Others: Buy 1 Sell 1
Timeframe used: M5
Maximum stop loss: 130
Take Profit: 150 (the maximum TP is listed, but it varies with volatility)
Hedging enabled
【Forward Analysis】
From the forward results, it is clear that performance varies by month.
Since it is a swing-trade, it can achieve large gains when opportunities arise, so monthly performance may not need to be heavily considered.
So far, in six months of forward, the maximum drawdown is ¥19,000 with a profit of +¥52,000, progressing smoothly!
【Backtest Analysis】
2007.1.1-2017.12.31 (11 years)
Spread 1.0
Total trades 4,463 (average annual trades 405)
Win rate 37.8%
Net profit $11,406 (average annual expected profit $1,036)
Maximum drawdown $1,368
Average gain $40
Average loss -$20
(Monthly and yearly P/L)
2011 and 2015 show negative results, but
in other years there were good years with more than +2000 pips!
Since Flame Angel is a swing-oriented EA, it has a drawback of not being able to stretch profits in extreme range-bound markets.
From 2007 to 2009, a large downtrend continued from the Lehman shock,
2013 was the year when the uptrend due to Abenomics began.
Conversely, 2011 and 2015 were ranging markets of 500 pips to 800 pips.
It is an EA that can earn substantially in markets with large price swings, so it is suited for trending markets.
So will the USD/JPY market after 2018 become a major move?
If you want to add swing trading to your portfolio in addition to a steady-range scalping EA,
this is a recommended EA!
Since the maximum drawdown per 0.1 lot is $1,368, you can operate from $2,000–$2,500.
If you adjust the lot size so that drawdown stays within 30%–40%,
you can expect an average annual return of about +50%.