A profitable EA has a high risk-reward ratio!! Thorough analysis of the EA "Sen-shi Man-kou"

A profitable EA has a high risk-reward ratio

Thorough explanation of EA “Senju Ban̄k”

■ Overview

This explains the points where “Senju Ban̄k” outperforms other EAs.

(Sales site) https://fx-on.com/systemtrade/detail/?id=14944

■ Strengths

① High risk-reward ratio.

・In 12 years of backtesting, net profit of 13,000,000 JPY with a maximum drawdown of only 550,000 JPY.

・When selecting an EA, this value is the most important.

<< Backtest results >>

・Net profit: 109,359 US$

・PF (Profit Factor): 2.00

・Expected payoff: 33.10

・Maximum drawdown: 4,574

・Maximum drawdown rate: 4.16%

・Total trades: 3304

・Win rate: 72.9%

② Simple and easy-to-understand logic

・Uses four moving averages, Bollinger Bands, and Stochastic

to perform a simple pullback buy / pullback sell strategy.

・When the higher time-frame trend is strong, the lower time-frame oscillator indicators enter short positions in the opposite direction of the upper trend, and when they align in the same direction as the upper trend, profits are extended with a trailing stop.

③ Confirms not over-optimized (pseudo forward test)

・Even if backtests look good, forward testing can be poor for many EAs.

・To prevent this,

During the first 10 years of the past 12 years, optimization is performed with Strategy Tester,

then the same parameters are tested for the remaining 2 years with Strategy Tester to verify performance,

and it is confirmed that performance barely declines.

<< 10-year backtest >>

Period: 2006.08.01 - 2016.08.01

Net profit 96,342

Profit factor 2.04

Expected payoff 34.51

Total trades 2,792 (273 times/year)

Period: 2016.08.01 - 2018.08.01

Net profit 13,014

Profit factor 1.77

Expected payoff 25.42

Total trades 512 (256 times/year)

④ Take-profit width (90 pips) and stop-loss width (90 pips) are the same.

When the take-profit width is smaller than the stop-loss width, profits usually grow, but there are times when a large drawdown occurs.

⑤ Maximum number of positions is two and not many.

If the number of positions is large, a large drawdown can occur when stop-loss triggers.

⑥ High number of trades

・3304 trades (275 times/year).

・Few trades can be worrying. If problems occur,対応 may be slow.

■ Sales site

https://fx-on.com/systemtrade/detail/?id=14944