Wednesday AUD/JPY strategy — this trading system exploits the certain tendency of AUD/JPY currency pair (Australian dollar vs. Japanese yen) to be statistically bearish during the pre-last hour before the rollover interest is applied on Wednesday. The particular day of the week was chosen because on Wednesday the rollover is tripled compared to normal days (Sunday and Saturday interests fall on Wednesday). It's unknown why AUD/JPY, a pair with a traditionally positive rollover interest, is sold 1-2 hours before the overnight swap is applied. Perhaps, traders (hedge funds) with big bullish positions prefer this time to partially close their positions without bothering the markets too much. This strategy has been implemented in a fully automated expert advisor for MT4/MT5 platform.
Features
+
Fundamental base for trading.
Very simple strategy.
Statistically perfect.
-
Only one trade per week.
Jump-like changes in the interest rate may affect it.
Strategy Set-Up
Trade only on Wednesdays.
Open an hourly chart of AUD/JPY pair.
Entry Conditions
At 15:00 EST (GMT-5 or GMT-4 during daylight saving time) open a Short position.
No stop-loss or take-profit.
Exit Conditions
When the new bar opens (16:00 EST) close your position.
Examples
Wednesday AUD/JPY System (+EA)
_________________________________________________________
----------- EDUCATION ---------
-------TRADING METHODS ------
--------- FOR TRADERS ----------
-------------- OTHER ------------
Wednesday 2009-10-14 Wednesday 2009-10-21
Wednesday 2009-10-28 Wednesday 2009-11-04
The example charts show last four Wednesdays (October 14, 21, 28 and November 4, 2009). The H1 bar that occurred on 15:00 EST is marked with the red ellipse. I've checked each Wednesday from January 7 till November 4, 2009 and the statistical gain from selling during that hour was 400 pips after 44 weeks. That's ~9.1 pip per deal, which is above the average spread for AUD/JPY (5 pips). Of course, there are some Wednesdays when the strategy results in a loss, but in a long run, it's profitable.
AUD/JPY Wednesday 15:00 Expert Advisor
AUD/JPY Wednesday 15:00 expert advisor is based on a trading strategy with the same name. It opens a position on 15:00 EST each Wednesday and closes it one hour later (on 16:00 EST). In the long run it should bring stable profit. Apply it to H1 timeframe. If you plan to backtest it, replace the order selection by ticket with the order selection by index, because MetaTrader 4 Strategy Tester doesn't work properly with tickets.
My test of AUD/JPY Wednesday 15:00 MetaTrader expert advisor resulted in $7,900 profit on $10,000 initial account balance. I used AUD/JPY H1 chart with 1 standard lot positions. The resulting maximum drawdown was only $1,723 (10.3%). I ran the backtest from 2008-07-07 till 2009-11-09. And AUD/JPY had both long uptrends and downtrends during that period.
MiniFAQ
What are the stop-loss and take-profit used by this EA?
It doesn't use stop-loss or take-profit levels. This EA closes position exactly one hour after opening it.
How often does it trade?
Once per week — every Wednesday. Of course, if it's turned on.
How do I set up its time zone parameter?
Set Server_EST_Difference to difference between your MetaTrader server's timezone and EST (Eastern Standard Time). For example, if your server's time is GMT+1 and it's not Daylight Saving Time period then you should set this parameter to 6 (default).
Downloads
---------------------------------------------
_________________________________________________________________________________________________________________________________________