Awesome_System2

Logic Analysis Using Backtest Results

The backtest for Awesome_System 2 was conducted using data from the past 5 years (2018.02.01 02:00 to 2023.12.29 23:55).

The backtest settings are as follows:

Initial Margin: 500,000 yen
Spread: Variable
Time Frame: 5-minute

Picking up some results from the backtest:

Net Profit: 2,702,553.10 yen
PF: 1.73
Max DD: 530,674.38 yen (26.75%)
Total Trades: 4,444
Expected Value per Trade: 608.14 yen

This is how it looks.
It has shown excellent performance not only as a martingale EA but also as an EA and in FX trading.

Now, I will analyze the logic based on these backtest results.

Main Logic

・Specialized RSI Entry
It is not uncommon for EAs to use RSI for entry. However, this EA specializes in entering Sell positions using RSI.
By pinpointing entries in line with the trend, it reduces the risk of incurring losses.

From the image, it can be seen that the sell entry is made at the position marked with〇. It can be analyzed that entries are made when the market is either "moving significantly in the direction of the buying trend" or "exceeding the overbought line significantly."

Additionally, the profit-taking condition is indicated by〇, showing that exits are made successfully at positions that exceed the oversold line the most.

The first six positions appear to be losses, but they were closed for profit as they reached the condition of "overall average profit."

・Advanced Martingale Strategy
The main focus during development was on adjusting the martingale width and the number of martingale entries. While martingale trading is known for its high risk and high return, adjustments were made to keep the maximum DD in check while not compromising the maximum profit rate. This has resulted in achieving a profit rate over five times in the backtest over five years.

・Profit Taking
Take Profit for each position is set at "25 pips," and it will also close when the overall average profit reaches "15 pips."

When quantifying the positions discussed in the previous RSI entry explanation, it shows "6 positions are negative" and "3 positions are positive."

Total loss amount is "-66,396.15 yen," and total profit amount is "90,549.72 yen."
As a result, the logic worked well, yielding an overall average profit of "24,153.57 yen."

・Stop Loss Settings
The stop loss is set at 500 pips. Excellent adjustments were made for 12 martingale entries.

The sell entry price on 2020/7/17 was 1.25739
The stop loss price on 2020/7/30 was 1.30343
It can be confirmed that the stop loss was firmly set at about 500 pips.

＜POINT＞ At that time, the GBP/USD market was forming a trend of GBP appreciation, experiencing a long upward trend.

・Lot Management
The initial lot starts at "0.01." During martingale, the lot size will vary while entering trades.

＜POINT＞ This effectively adjusts the reward when the price moves against you.

・Spread Limitation
By setting the maximum allowable spread at entry to 50 pips, the probability of high-risk trades is significantly reduced.

＜POINT＞ This means that if the spread exceeds 50 pips, no entry will be made!

・Strategy Considerations for Awesome_System 2
Using "RSI" to seize trend opportunities for entry, while lowering the average purchase price through "martingale" to aim for winning chances.
Martingale trading tends to have larger losses in a single trade compared to others, but it achieves thorough risk management through appropriate "stop loss settings" and "lot management."

Parameter Settings

・GMT Settings(Greenwich Mean Time)
Please set this according to your FX broker.
Set the time difference between the FX broker's winter server time and Greenwich Mean Time.
Example: Exness adopts Greenwich Mean Time for server time, so it will be "GMT+0."

・Daylight Saving Time Settings
Countries that are "far from the equator" or "large countries" may have a system called Daylight Saving Time, which shifts time based on the length of daylight hours by season.
This setting is in place to eliminate the time difference caused by this system.

・MAGIC(Magic Number)
Cannot overlap with other EAs.

・Lot
It is recommended to have 500,000 yen for every 0.01 lot. This is the minimum amount, and having around "1,000,000 yen" increases the likelihood of avoiding account failure.

＜POINT＞ Since the maximum DD in the backtest exceeds the initial margin of 500,000 yen, it can be analyzed that having 1,000,000 yen provides additional peace of mind.