Annual return of over 30% is expected! A single-position EA with a high trade frequency "Wisdom Penguin"
Wisdom Penguin Overview
Currency pair: [USD/JPY]
Trading style: [Scalping][Day Trading]
Maximum number of positions: 1
Timeframe used: M5
Maximum Stop Loss: 150 pips
Maximum Take Profit: 18 pips
(Note: in the parameters, SL 1500 is expressed in the unit 'points',
which is one digit smaller than pips)
USDJPY single-position EA with a classic design!
A key point is that it averages 269 trades per year with an 89% win rate.
【Forward Analysis】
79 trades in just under two months in forward testing,
Total gained pips are 195 pips.
Even by month, it's positive every month with a strong start!
【Trade Example】
Red: SELL
Blue: BUY
The logic uses MACD and RSI to take contrarian positions on overextensions and to follow the trend on pullbacks within the trend.
TP is 16 pips, but it activates its own intelligent trailing to extend profits.
【Backtest Analysis】
2005.01.31-2018.07.25
Spread 0.2 pips
Fixed 0.1 lot: $421
Net profit $6,955
Total trades: 3,506
Maximum drawdown
Win rate: 89%
Average gained pips: 5 pips
Maximum gained pips: 33 pips
Average loss pips: -26 pips
Maximum loss pips: -160 pips
That is the result.
Recommended margin per 0.1 lot is
(4.5)+(5*2)=14.5
You can operate from 145,000 yen.
Let's also review annual and monthly profit and loss
【Monthly P/L】
November tends to be slightly more prone to losses.
There were periods with up to three consecutive months of losses.
【Annual P/L】
Average annual gain over the last 5 years: $425
Average annual gain over the last 13 years: $524
That is the result.
In the last 5 years, annual return is 32%
In the last 10 years, annual return is 39%
(Assuming a maximum drawdown of 50%)
With one-position operation and many trades per year, an annual return over 30% is quite solid for an EA.
Also, because the win rate is high, it is suitable for compounding.
【Compound Interest Backtest Results】
Over the last 5 years, backtested with 1% compounding (assuming 1 lot per 1 million yen).
1,000,000 yen ⇒ 5,390,000 yen!
A +440% gain over 5 years.
Relative drawdown is 47%; to reduce DD, setting around 0.7 per 1 million yen would bring relative DD into the 30% range.
Also, since the average gained pips are only 5 pips, it is essential to trade with a broker offering tight spreads.
Another flagship USDJPY single-position EA has been added to the lineup!
