Trend following trading strategy “Lazy Trader” is designed mainly for Forex and can be used on all JPY pairs except USD/JPY on H4 time frame. Its rules state that:
A Trader Should place a buy stop and a sell stop orders each Monday right after first bar is closed. Place a buy stop 200 points above the high of the 4 hour bar and a sell stop 200 points below the low of the 4 hour bar. Distance between these two orders will be the stop loss distance. Take profit is 3 times stop loss. At the end of the week both orders should be closed/cancelled if not yet closed by stop loss/take profit to not carry any trades over a weekend.
We have run the test for 2010.01.01-2018.11.30 using Each Tick modelling on CHFJPY-H4, with no leverage, without reinvestment, assuming spread equals 10 ticks. These are the main parameters of financial performance, that may allow you to evaluate whether this strategy worth your attention or not:
|ROI||# of trades||Winning ratio||Max. drawdown|
The following charts may give some possible insights on which filters to apply (time sessions, day of week limitation, trend strength threshold, overbought/oversold conditions, volatility range) to turn this strategy profitable should you decide to use this strategy in your investment portfolio:
If you decide to buy an EA, coded in accordance with the strategy and used for the test, or to make any amendments to the original strategy rules – please, feel free to contact us.