Reversal Edge Nikkei 225

Version 1.5

Overview

Short aiming for a pullbackandLong aiming for a reboundare the two logics that make up the Nikkei 225 Expert Adviser (hereafter referred to as EA).

It is a strong logic for chart patterns such as ascending triangle consolidations, ascending wedge patterns, descending triangle consolidations, and descending wedge patterns that have a certain range and directional sense. We aimed for stable and efficient operation while keeping drawdowns small.

NoticeDue to the termination of MT4 account provision at the former EZ Invest Securities, forward testing on demo accounts is currently suspended.

For real forward testing, please check the performance operated by the seller themselves at Rakuten Securities CFD.

https://real-trade.tech/accounts/51799/20191123,20191122

Update History2023/10/1 Version 1.4 Added settings to close based on logic at profit-taking and to close after a certain number of days have passed since entry.

2024/9/26 Version 1.5 Changed the initial lot size to 1.0 to match one micro contract of Nikkei 225 futures at Rakuten Securities CFD.Avoiding Contrarian Shorts,Avoiding Contrarian Longsfilters were added, allowing for ON/OFF settings.

Entry

Entry judgments are made with each new 1-minute candle. The displayed candle on the chart can be any candle.

We will enter in a way that becomes trend-followingtrend-following by buying after confirming a small rebound and selling after confirming a small pullback, using a 15-minute chart.

Short aiming for a pullbackandLong aiming for a reboundmay sometimes result in both logics taking positions, leading to hedging.

Positions may carry over across days and weeks.

During volatile periods like the COVID shock, we will observe and enter when the market becomes moderately calm.

In the phase where the Nikkei 225 updated its new high for the first time in 34 years,Long aiming for a reboundcontinued to perform well as it fit into the patterns it excels at. This strategy is strong in markets that repeat significant rises after brief dips.



Backtest

The following is the backtest result using historical data from Rakuten Securities CFD (JP225) for the period: January 2017 to September 2024, with a lot size of 1.0 (equivalent to one micro contract of Nikkei 225 futures).

Parameter Settings

This EA uses parameter values optimized with a focus on return and Sharpe ratio as initial values.

Common parameters for Short and Long

MaxSpread(Initial value 15.0)

No entries will be made when the spread exceeds this value.

At Rakuten Securities CFD (JP225), it is 15.0 (yen) and at OANDA Securities CFD (JP225), it is also 15.0 (yen).

MaxSlippage(Initial value 500)

No entries will be made when slippage exceeds this value.

At Rakuten Securities CFD (JP225) with a tick size of 0.01, it is 500 (=5.0 yen) and at OANDA Securities CFD (JP225) with a tick size of 0.1, it is 50 (=5.0 yen).

SetOrderTakeProfit(Initial value false)

If false is specified, it will close based on logic at profit-taking. This setting tends to result in larger profit margins when there are sudden price movements due to sharp rises or falls.

If true is specified, a take profit (T/P) order will be set. This setting is the same as the one used in version 1.3 and earlier.

DaysToClose(Initial value 8)

Positions will close after a specified number of days have passed since entry.

Parameters for Short aiming for a pullback

MagicNumber_Reversal_Short(Initial value 20191123)

Short aiming for a pullbackis a magic number used to identify orders.

Please set it so that it does not overlap with the magic numbers ofLong aiming for a reboundand other EAs running on the same MT4 account.

Lot_Reversal_Short(Initial value 0.1)

Please set the lot size for short positions. (1)

One micro contract of Nikkei futures is 1.0 at Rakuten Securities CFD (JP225) and 10.0 at OANDA Securities CFD (JP225).

TakeProfit_Reversal_Short(Initial value 1.5)

Profit will be taken when the price drops by a percentage from the selling price.

For example, if the selling price is 30,000 yen, profit will be taken at a 1.5% (450 yen) drop.

StopLoss_Reversal_Short(Initial value 0.6)

A stop loss will be triggered when the price rises by a percentage from the selling price.

For example, if the selling price is 30,000 yen, a stop loss will be triggered at a 0.6% (180 yen) rise.

FilterRS_V1_5(Initial value true)Avoiding Contrarian Shortsfilter can be turned ON/OFF. Setting it to true will reduce the number of trades but is expected to improve the win rate and lower drawdowns. If false, it will be the same as the settings in version 1.4 and earlier.

Parameters for Long aiming for a rebound

MagicNumber_Reversal_Long(Initial value 20191122)

Long aiming for a reboundis a magic number used to identify orders.

Please set it so that it does not overlap with the magic numbers ofShort aiming for a pullbackand other EAs running on the same MT4 account.

Lot_Reversal_Long(Initial value 0.1)

Please set the lot size for long positions. (1)

One micro contract of Nikkei futures is 1.0 at Rakuten Securities CFD (JP225) and 10.0 at OANDA Securities CFD (JP225).

TakeProfit_Reversal_Long(Initial value 1.6)

Profit will be taken when the price rises by a percentage from the buying price.

For example, if the buying price is 30,000 yen, profit will be taken at a 1.6% (480 yen) rise.

StopLoss_Reversal_Long(Initial value 0.7)

A stop loss will be triggered when the price drops by a percentage from the buying price.

For example, if the buying price is 30,000 yen, a stop loss will be triggered at a 0.7% (210 yen) drop.

About 1 Lot and Required Margin

Please refer to the trading quantity of the CFD provider for lot and required margin.

Handling Securities | Rakuten MT4 CFD | Rakuten Securities (rakuten-sec.co.jp)

List of Stock Index CFDs handled by OANDA Securities Co., Ltd.

The lot size for one micro contract of Nikkei 225 futures is 1.0 at Rakuten Securities CFD (JP225) and 10.0 at OANDA Securities CFD (JP225), with the required margin being 38,000 yen when the Nikkei 225 is at 38,000 yen.