Yen Trader

*** UPDATE July 25th, 2016 ***
*** Starting from post#528 Yen Trader evolved into Cross Trader
*** where system idea is applied to all crosses, not only yen crosses






Pairs : XXXJPY, where XXX is one of the major currencies (except USD which will be used as a reference currency).
Time Frames : H1, H4, D1

Simple Method

1. If XXXUSD is UP and USDJPY is UP --> BUY XXXJPY. EXIT when either XXXUSD is DOWN or USDJPY is DOWN.
2. If XXXUSD is DOWN and USDJPY is DOWN --> SELL XXXJPY. EXIT when either XXXUSD is UP or USDJPY is UP.
3. IF USDXXX is UP and USDJPY is DOWN --> SELL XXXJPY. EXIT when either USDXXX is DOWN or USDJPY is UP.
4. IF USDXXX is DOWN and USDJPY is UP --> BUY XXXJPY. EXIT when either USDXXX is UP or USDJPY is DOWN.

One way to define UP and DOWN on H1 time frame (as an example):

1. Pair is UP if current price is greater than where it was 24 hours ago. Greater by a min of x pips. where x is H1 ATR(24).
2. Pair is DOWN if current price is less than where it was 24 hours ago. Less by a min of x pips. where x is H1 ATR(24).

Similar approaches can be applied to H4 and D1, so for H4 we can compare current price to a week ago, and for D1 to a month ago.

BUY Example on NZDJPY H1 (live) - Simple Method



Initial Stop : when price hits the Red Line on Either Chart.

SL Loss can be trailed by last 24 hour price on both charts (Major and USDJPY).

EDIT : edited for corrected chart.

The above example worked very well (live).

it worked also with eurusd +usdjpy = eurjpy or gbpusd + usdjpy = gbpjpy. Am I right ?

interesting approach.

Of course, XXX in XXXJPY from 1st post, refers to EUR,GBP,AUD,NZD,CHF and CAD.
NZD was just an example.

Hey abokwaik i dont know if i understand Your method.
In this example below can i buy here?

Sorry for the late reply.
Actually your entry would be a bit late.

The best entry will be at the switch time.
For example "

1. If NZDUSD is UP and USDJPY is DOWN:
   1. For a BUY we wait for USDJPY to turn UP while NZDUSD is still UP.
   2. For a Sell we wait for NZDUSD to turn DOWN while USDJPY is still down.

2. If NZDUSD is DOWN and USDJPY is UP:
   1. For a BUY we wait for NZDUSD to turn UP while USDJPY is still UP.
   2. For a Sell we wait for USDJPY to turn DOWN while NZDUSD is still down.

The method actually utilizes the JPY and USD Strength and Weakness.
If both are weak but JPY is weaker than USD we buy XXXJPY.
If both are strong but JPY is stronger than USD we sell XXXJPY.

I hope its clear.

I developed a couple of EAs to test the method, and I will post shortly.
However no many opportunities on higher time frames.
We will have more opportunities on lower time frame (some sort of scalping).
And of course it can be applied to multiple pairs.

Yen Trader (for testing only ... still work in progress)

I urge people with good data quality to perform the previous backtest on their data and post their results.

Another test on GJ H1 2016 with Fixed Lot size



Again, I urge people with good data quality to perform the previous backtest on their data and post their results.

Forward test on EURJPY.
EA Time frame set to H1, and EA placed on M5.

looks good abokwaik ...are you testing 24/5 or particular session/s only?

No. On and Off as my time permits.

The EA is till running on EURJPY/M5 chart, where the trades from previous post were closed at trailing stop. And new ones opened

Interesting strategy abokwaik.

But how do you backtest such an EA? I thought it was impossible in MT4, because you can't backtest multiple currency pairs (which are needed if you want to look where XXXUSD and USDJPY are heading, right)

Minor Bug with trailing stops, sometimes it doesnt trail properly

​Sorry,where do you take profit?

In mt4 it is not possible to backtest an EA that TRADES multiple pairs, but it is always possible to READ multiple pairs data.

By fixed TP or trailing stop as you activate/deactivate in input settings

I will check and fix.

Interesting idea abokwait.
Could you develop also a dashboard ( or an indicator ) providing for each pair up or down 24 h earlier according your rules ?

It crossed my mind but I am very lazy now a days so I left it for later.