BreakoutSonic

Thank you for visiting BreakoutSonic.

BreakoutSonic is a "Breakout EA that settles at TP and SL".

In principle, settlement is not performed by the internal logic, but by the TP and SL set at the time of order placement (*).

*A risk avoidance function is implemented to close positions to prevent unexpected losses due to widening spreads.

By settling by TP and SL, we aim to produce high reproducibility even in highly uncertain real trades.

I can hear you saying, "No matter how reproducible it is, there is no way you can win with such a simple mechanism."

• Backtest Results
• Why did you decide on a system that settles only TP and SL?
• Two features that are equipped to withstand long-term operation

The following is the order in which they are presented.

Backtest Results

First, here are the results of the backtest.

(Back test conditions Currency pair: USDJPY, Period: January 1, 2003 - January 1, 2022, Lot: 0.1 fixed TDS variable spread)

graph

The graph of the back test, as shown in the image, shows a steady and steady increase over a long period of time.

It has been quite rough since 2003, but has become more stable since 2012.

Detailed data

The next detail of the backtest is that it features a not-too-high win rate and a high expected gain.

There is an expected gain of 2.3 pips, so even if it slips a little in real operation, it will remain profitable.

Supplementary information on the concept of win rate.

Although there is personal preference, it is difficult to use a win rate that is either too high or too low.

High-winning types, who have a winning percentage of 80% or more, are basically knick-knack types, and they may erase profits accumulated from many winning trades with a single loss.

These types of people lose heart when they have a losing streak, for example.

On the other hand, if the win rate is too low, it is hard to simply wait until you win and become anxious.

We have made the win rate not too high, based on the idea that an EA with a win rate of around 60%, a good balance of risk rewards, and a high number of trades would be easier to operate.

(Parameters are open, so you can set a high or low win rate if you like.)

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Although we were able to confirm that the EA was winning in the back test, those who have experience in EA operation may think, "There are many EAs that lose in real operation even if the back test is good.

Next, I will explain BreakoutSonic's main concern, which is why we settle at TP and SL.

We believe that this mechanism makes it likely that a market like the one in the backtest will win as much in real operations as it does in the backtest.

Why did you decide on a TP/SL settlement mechanism?

I think it is common that most of the normal EAs are settled by internal logic, and TP and SL are set to limit the risk.

As far as breakout EAs are concerned, I have the impression that many of them use high-speed trails to catch the price movement at the moment of breakout.

The reason why BreakoutSonic does not use such a method is to improve reproducibility in real trading.

Complex internal logic and high speed trading tend to be less reproducible in real trading.

Difference between back testing and real trading

The differences between back testing and real trading are as follows

Because of these differences, I was thinking, "I was losing in real trades, but when I did a backtest for the same period, I was winning. Why?" Things like this can happen.

For back testing

Back testing allows the EA to fully demonstrate its performance.

Even complex internal logic can be executed in a timely manner, and orders are executed at ideal rates.

For Real Trade

In real trading, EAs may not perform at their full potential due to various restrictions.

There are various constraints such as PC processing power, server processing power, and communication speed with the server.

If the number of ticks or number of EAs in operation is large, it is possible that not all EAs are being executed on every tick, and if the communication speed is slow, the breakout fast trails may fail.

It is possible that the VPS itself could go down due to trouble.

Breakout scalping EAs are particularly prone to differences

Breakout scalping EAs are particularly prone to this difference, and the difficulty of achieving results in real trading is relatively high.

• Create an environment that ensures EA processes can be executed.
• Choose a brokerage firm that offers the most favorable terms possible.

It is easy to lose if you cannot

Reduce constraints on real trades by settling at TP and SL

BreakoutSonic insists on settlement by TP and SL to reduce this uncertainty in real accounts and to achieve back-test-like results in real operations.

Settlement by TP/SL means eliminating the influence of the EA's real-time processing on the trade results.

By doing so, the breakout scalping EA tends to

• EA did not work and failed to execute trail order and failed to gain.
• The trail order was placed, but the brokerage received the order too late to change the rate and failed to take advantage.

This can eliminate problems such as the following.

(TP/SL's struggle with slipping continues...)

Two features that are equipped to withstand long-term operation

BreakoutSonic is an EA developed by the hassle-free developer himself to make a profit by leaving it alone for a long period of time.

For this reason, two functions are provided to ensure safe operation even when left unattended for long periods of time.

Function 1: Hazard Avoidance Function

In 2022, there were many incidents in which spreads widened abnormally during the release of economic indicators and other events, resulting in losses greater than expected.

It is not correct to say that "setting SLs is safe"; SLs can be penetrated by spread widening and slippage.

In fact, I have experienced an accident in 2022 that penetrated the SL by 100 pips and suffered significant losses.

To prevent such accidents, BreakoutSonic includes a hazard avoidance feature.

The spread is constantly monitored, and if the spread becomes larger than the specified value, the stop loss order is deleted and no entry is made.

(You can also set up the system to force the closing of open positions.)

By detecting danger through the spread, you can counter sudden changes not only in economic indicators, but also in sudden news.

(Note: This can never be avoided.)

Function 2: Variable TP and SL setting function

If we were to settle at TP/SL, the question would be, "Which value should we set?" The question arises: "Which value should be set?

In addition, the appropriate TP and SL values may also change when the dollar is at 80 yen and when it is at 140 yen.

To counter this problem, BreakoutSonic has a variable TP and SL setting function.

This function automatically sets TP and SL according to ATR.

We made this with the idea that it would be possible to set a value that would be more flexible and suitable for the market than setting a fixed value.

For your reference, here are some images of backtests with fixed values and variable TP and SL.

(Back test conditions Currency pair: USDJPY, Period: January 1, 2003 - January 1, 2022, Lot: 0.1 fixed TDS variable spread)

Reference 1: Back test with fixed value TP and SL at BreakoutSonic prototype stage

Reference 2: Backtest with variable TP and SL of BreakoutSonic

For TP and SL with fixed values, the first half of the year (about 2003-2011) has been very poor, but the variable TP and SL have improved considerably.

We do not know what will happen in future markets, but we believe that in past markets, variable TP/SLs have made them more adaptable.

Maximum TP and maximum SL can be set to avoid unexpectedly large values of TP and SL by automatic setting.

Conclusion

That's it for BreakoutSonic.

Based on my own experience of operating various EAs and having them fail, I developed this EA with an emphasis on high reproducibility.

We believe that this system can be used by beginners as it is designed to make it difficult to see differences in performance between back tests and real trades.

Also, parameters are open and there are no restrictions on currency pairs, so we think that even experts who want to optimize and operate with a variety of currency pairs will enjoy this service.

We hope you will be interested in our services.