Best Forex EA: USDJPY Strategy


Best Forex EA in 2019 was the USDJPY strategy that we have in our courses.

Best Forex EA is what the traders look for. And the only way to do it is by testing many EAs and follow the results.

The best Forex EA 2019 was the USDJPY strategy that we have in our Top 10 USDJPY strategies course. And at the beginning of 2020, I have included that EA in the Top 5 Forex strategies course where I keep the best performers from all courses.

Dear students, in this lecture I will explain how the best Forex EA 2019 in  USDJPY strategy works, what is the execution, and where exactly you need to enter if you are trading it manually. So we said, in the previous blog post that we have the MACD on H1:

Best Forex EA 2019
MACD on H1

and the MACD on M30.

MACD on M30

And then we have the Ichimoku and the Williams Percent Range on M5.

Best Forex EA 2019
The Ichimoku and the Williams Percent Range on M5

We use this M30 and H1 for confirmation but the trades are executed on M5.

And actually, this is for 2 Forex EA strategies from the course, and the rest are on the M15 time frame. Trading on different time frames gives a bigger risk diversification.

With the GBPUSD strategy, I said that we are looking to trade with the direction of the trend, the direction of the higher timeframe on M30 and H1. But on USDJPY strategy, it’s a different case. On USDJPY on H1, the MACD allows us to trade long or to buy when the MACD line is lower than the signal line.

So that is the opposite thing. We can buy when the MACD line is below the signal line. And on M30, we can buy when the MACD line is below the 0 line, which is the line where the MACD becomes negative and positive. Below is the 0 line.

The Zero line in MACD

It’s really the opposite thing. And what is the idea? Simply, with the USDJPY, we are looking to buy on M5 when the price is cheap on the higher timeframes and we are looking to sell when the price is expensive.

The USDJPY strategy that is behind the Best Forex EA 2019

When the MACD is above the signal line, the price gets expensive. We want to sell it when it is expensive and we want to buy it when it is cheap.

So the difference is that the GBPUSD strategy follows the trend, and the USDJPY strategy is more of a range strategy. In other words, more of a strategy that aims to buy, one more time, when the price is cheap and sell when the price is expensive. And you will see how that works. I will arrange the charts so they will be more visual.

Here is the H1 chart, the M30, and the M5 just like I did for the GBPUSD. I will move to the end, I just press the End button on my keyboard to go to the end or to the current price.

Best Forex EA 2019
M5, M30, and H1 charts respectively

At the current moment, I don’t have confirmation to trade because on H1 I have the MACD below the signal line which means that I am allowed to buy. But on M30, the MACD line is above the 0 line.

So these 2 don’t confirm each other. At this moment, I should not be looking at all at M5 because there is no confirmation. What is the entry condition on M5? We are looking to buy when the price crosses the Kijun-sen line, the blue line upwards.

The entry condition on M5

When it crosses upwards we are looking to buy. But we need to have the confirmation that the Williams Percent Range changes its direction upwards at the same time.

The Kijun-sen is the key factor in the Best Forex EA 2019 for the USDJPY strategy

So if the price crosses the Kijun-sen, we need to see that the Williams Percent Range changes its direction upward.

Best Forex EA 2019
The Williams Percent Range changes its direction upward

But as we said, we don’t have the confirmation from M30 because it’s above the 0 line. So this is when we are looking to buy. When we are looking to sell, we need to see the price crossing the Kijun-sen or the blue line downwards and at the same time, we need to see that the Williams Percent Range changes its direction downwards.

These are the 2 rules that need to happen, the 2 events that need to happen at the same time on M5 in order to enter the market. So let’s have a look when we can buy or sell on M5, confirming on M30 and H1. For example, on M30, all that period the MACD line is below the 0 line which means that it allows us to buy.

The MACD line allows the best Forex EA 2019 to sell.

And when the price is above the 0 line, it gives us the confirmation to sell. For example, on the 24th of January, after that long period, we have the MACD above the 0 line which gives confirmation to sell.

Confirmation to sell on M30

You can place lines over the MACD but I prefer it to be over the chart. So the confirmation for MACD starts when the MACD line crosses the 0 line upwards, but for H1, the confirmation to sell starts when the MACD line is above the signal line, until this moment.

Confirmation to sell on H1

So the period that we are allowed to sell on H1 is much longer, this is when the MACD is above the signal line. But on M30, it’s much shorter when the MACD line is above the 0 line.

The confirmation

So here we are not looking at all the signal line, just the MACD. When it’s above the 0 line, we have the confirmation to sell. Now, let’s have a look at what we have on M5.

We said that on M5 we are looking to sell when the price crosses the Kijun-sen downwards and at the same time, we want to see the Williams Percent Range changing its direction downwards. We have confirmation after 10:30 on the 24th. The first cross came but at this moment, the Williams Percent Range is just going downwards.

There is no change in the direction. Then the price goes up and it went above the Kijun-sen, above the blue line, and then it went below on this bar which is a cross. We consider this as a cross because it went above then it went below.

The cross

Even a very small distance, still it’s a cross. Now, on this line, what you see is exactly what we need to have as confirmation. The Williams Percent Range changes its direction downward.

The Stop Loss and Take Profit in the best Forex EA 2019

So if you follow the crosshair, the price is going up, it goes above the blue line. And at this moment, the Williams Percent Range is going up. When the price goes down on the next candle below the blue line, the Williams Percent Range changes its direction. And this is the first entry we can have. I will place a horizontal line as well, exactly when it’s crossing the blue line.

I made it red just because it’s a sell signal.

Best Forex EA 2019
The sell signal

And now for this strategy, what I have is Stop Loss of 70 pips and Take Profit of 80 pips. In the previous lecture, you will get the sheet with the setup. So Stop Loss is 70 pips or 700 points, Take Profit is 80 pips. We place the Stop Loss and the Take Profit so we will see what happened after that. I will change the parameters, entry, 109.58 plus 70 pips.

That would be 110.28.

Stop Loss

I click on OK and it went above on the right spot. And as Take Profit, we said we have 80 pips. So I will place another line. Let’s make this one green since it’s a Take Profit. And as parameters, what I will have, 109.30 minus 80 pips. That would be 108.50.

Take Profit

I’m not going into the details, I just want to share with you how the strategy works.

Taking the profit

The price went a little bit on a negative, then it went to a positive going down. The Take Profit is still far away and the price goes sideways. The price here went towards the Take Profit.

It’s a personal choice if you want to take the profit a little bit earlier or not. If you’re in front of the screen, I would suggest you take the profit if you see that you are getting very close because sometimes you will notice that the price goes towards the Take Profit and then reverses and might hit the Stop Loss. Personally, what I do if I see the price going close to the Take Profit and it has less than 10 pips to reach the Take Profit, I close it and I take the profit.

This is if I’m in front of the screen and if I see it. But the idea of the Take Profit and the Stop Loss is not to touch it. The price went up and then it went down, and it hit right over here the Take Profit.

The Take Profit is hit

So having a Take Profit and the Stop Loss eliminates the emotions.

Don’t involve emotions in your trading

Many times when you enter, you will see the price going against you and people start to feel fear that they will lose and they hurry to close the trade. But there is the Stop Loss and as I said, with these strategies, the Stop Loss and the Take Profit are at these places for a reason based on a lot of statistics and algorithms that I have used to see which are the right levels. So try to avoid the emotions. Personally, when I trade manually, I place the Stop Loss, I place the Take Profit, and I just leave the trade. I don’t look at it.

Otherwise, you will start to feel a lot of emotions. You might fear when the price goes to a loss. Or you might even fear when the price goes to a profit, you will be afraid not to lose your profit. So, for example, if you have $40 but your Take Profit is at 80, people fear that they will lose their profit and they hurry to close the trade. But as seen above, the price goes sideways for a couple of days, and then it hits the Take Profit in this example.

So the idea of Stop Loss and Take Profit is to avoid the emotions. This is the strategy with the Ichimoku and the Williams Percent Range. A very interesting strategy. You will need some time to get used to the indicator if you’re using it for the first time. But with this strategy, we are using just the blue line.

You can download this Best Forex EA 2019 from the Top 5 Forex strategies course. 

Thank you for reading and if you have questions let me know.

Cheers.

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