No annual losses & annual average gain 900 pips! A well-balanced GBP-based EA "Clover GBPUSD"
GBPUSD-based EA with low maximum drawdown and high profitability
'Clover GBPUSD'
【EA Overview】
Currency pair：[GBP/USD]
Trading style：[Scalping][Day Trading]
Maximum positions: 4; Others: configurable
Timeframe used: M5
Maximum stop loss: 85 (buy:85 pips, sell:80 pips)
Take profit: 95 (buy:90 pips, sell:95 pips)
Forward testing for about one month,Profit of 29,000 yen against a maximum drawdown of 10,000 yenand a very good risk-reward balance.
This is a notable feature.
【EA Logic】
The base approach is trend-following scalping, but when price moves against you,a doubling-down averaging-in mode is included.
It's a method often used in discretionary trading, but with discretion it can lead to endless positions and failure.
However, with an EA, averaging-in is executed according to pre-set rules, so risk is limited.
（Trade Example）
Blue: BUY
Red: SELL
It captures the 5-minute wave well, performing clean pullback buys and retracement sells. (Of course there are losing trades!)
If additional entries are triggered.
First entry at 0.1 lots, second entry at 0.2 lots, doubling up to secure profits.
Averaging-in at reversal-prone points, but losses can occur, of course.
How much would performance differ with and without the doubling-down averaging-in mode?
We compared with and without it over the year 2017.
Throughout the year, having additional positions (blue) ended up positive overall!
In 2017, it activated about three times, so it seems not very frequent.
If you want to pursue a bit more profit, you should try it!
【Backtest Analysis】
2008.01.01-2017.12.31
Spread 1.5
0.1 lot fixed; Additional entry mode: True
Net profit +924,807 JPY
Maximum drawdown -77,154 JPY
Win rate 57%
Total trades 2128 (annual average 212)
Average win amount 3,072 JPY
Average loss amount -3,116 JPY
Thus
Average winand average loss are nearly 1:1, so it tends not to experience large drawdownsas designed.
However, the win rate is around six-tenths, so it is a steady, step-by-step accumulation approach.
It's an EA you can operate calmly without worrying too much about wins and losses.
Be careful, though, as profits may turn negative if the win rate drops below 50%.
（Annual P/L）
Looking at yearly P/L,Ten years of backtesting show no negative years, an excellent and stable performance!
Although yearly profits vary, the average annual expected value at 0.1 lot is +92,000 JPY.
With a maximum drawdown of 70,000 JPY, the GBPUSD required margin is 75,000 JPY + (7 × 2) = 215,000 JPY.
If you do not use the Additional Entry Mode, you need about 220,000 JPY,
If you use the Additional Entry Mode, the required margin doubles, so about 300,000 JPY is needed.
For 300,000 JPY, annual profit of +90,000 JPY yields 30% annual return,which is an excellent annual return for an EA!
【Compounding Mode Available】
With won rate around 60%, compounding mode may not be highly expected, but the results were quite good.
Backtesting the last five years with Risk 5% shows
100万円⇒600万円, a +500% result!
Relative drawdown is 25%, within acceptable range.
Even with simple interest, you can aim for about 30% annual return, but with compounding you may reach +100% quickly.
With a stable design, forward performance looks very promising!
