The weak point of technical analysis and, accordingly, trading advisors is the influence of a fundamental factor. Published reports, statistics, or the performance of influential persons can instantly change the market situation. Neither graphical nor technical analysis is able to predict market behavior at the time of a fundamental surge. How to exclude it? Trade when there is no news. For each currency pair, this is its time and the Tokyo advisor just takes into account this nuance.
Tokyo Advisor: Mastering Trade in the Asian Session
Tokyo Advisor is a highly specialized robot designed to earn fluctuations of the GBP / USD currency pair only. The most active trading on this currency pair in the European session, which is associated with the feature of time zones. In the Asian session, when there is no news from Europe, trading in this pair takes place calmly, without strong bursts. Someone on the contrary does not like sluggish markets, preferring to make money on strong trends. And someone is a supporter of a relatively predictable conservative trade.
The results of testing a Tokyo advisor at first may be slightly puzzling. Judging by the back test provided by analysts of the broker AMarkets, with a drawdown of 86.09%, the yield for 6 months was only 47.7%. It would seem that for a calm market such a strong drawdown is nonsense. When studying the Bektest in detail, the reason is easy to find: most statistical news increases volatility in the first 30-120 minutes. After that, the market either goes flat or acquires a clear focus. But there are news that have such a strong influence that volatility persists in the Asian session (for example, Brexit). The second reason is a factor affecting the value of the dollar against all currencies (for example, the conflict between the United States and the DPRK).
The Expert Advisor has many versions and is constantly being optimized. For example, back in 2013, the adviser had the 17th version. There are a few changes in the most recent updated version:
- Now the position to be opened can be adjusted with two parameters: PositionMaxOpenHours – 7 (time in hours, after which the position is closed if orders did not work) and PositionMaxOpenHoursMinProfit – 8 (minimum desired profit margin);
- floating income is immediately put on the chart;
- optimized trailing performance.
Tokyo Advisor works on an hourly timeframe, the recommended deposit is $ 1000. USA. The main settings relate to the setting of periods of sliding, take profit levels and stops, trading time.
Summary. Tokyo Advisor is a simple sliding-based advisor that works for a limited time. Partly for the trader, this is a plus – he knows exactly when to relax. Positions do not open very often – 2-3 times a week, held during the Asian session. At the time of serious fundamental shocks trade is not recommended. Join the discussion advisor in the comments!