No annual losses in 12 years of backtesting! An annual return of 50% or more is solid 'Scalping Dragon'
No annual losses in a 12-year backtest!
Single-Position Scalping
『Scalping Dragon』
【Scalping Dragon Overview】
Currency pair: [USD/JPY]
Trading style: [Day Trading][Scalping]
Maximum position count: 1
Used timeframe: M5
Maximum stop loss: 100
Take profit: 20
【Forward Analysis】
Forward operation2017.4～ 10 months
Fixed lot: 1.0 (100,000 units)
Net profit: +343,600 yen
Return: +38%
Maximum drawdown: -230,100 yen
Number of trades: 299
Average gain amount-10,487yen
Average loss amount: -17,714
Win rate: 66.89%
Although it is a scalping EA, with 1 position it trades on average 1.5 times per day
so it is close to day trading.
【Backtest Analysis】
In a 12-year backtest from 2005 to 2016,
using fixed 1.0 lot
Maximum drawdown: ¥636,000
Net profit: +¥12,006,200
(Average annual profit: +¥1,000,516)
Total trades: 7,483
(Average annual trades: 623)
This is the result.
Because the maximum drawdown against ¥1,000,000 margin is ¥630,000, which is high,
approximately 0.5 lots per ¥1,000,000 would be appropriate.
In that case, the average annual profit would be +¥500,000, so even thenannual return of +50%would be achievable!
Since compounding is not set, if you manually compound by operating 0.5 lots per ¥1,000,000,
you could expect the annual return to exceed 50%.
Let's take a closer look at the backtest in more detail
There is stagnation around 2012–2013, and
note that the maximum drawdown occurred in 2016.
【Monthly Profit/Loss】
Looking monthly, May and August tend to be slightly weaker.
Adjusting the lot size might be a good idea.
Also,in 2016, when the maximum drawdown was updated, profits were also large, at +120%— a notable feature.
A larger drawdown does not necessarily mean lower profits.
【Annual Profit/Loss】
Annual profit varies, butthe key strength is that there were no negative years in the 12-year backtest!
As a 1-position EA, you can use it alongside other EAs by adjusting the lot size.
FX Aristocrat's scalping series includes others as well ♪
A superb scalping EA dedicated to GBP/USD!
A high risk-reward scalping strategy
