.

EDIT: This program is for all pairs, not only GBP/JPY. (Unfortunately I cannot alter the Thread title)

was burnt before by overtrading I hunted a system that would offer a longer term profitable egy. Because it's simple and consistent, I depended on Parabolic SAR. I have just back tested since '04, but the results so far look promising. I am aware that all indictors lag, but SAR seems to be on the ball with not many negative trades. I've realised the many profitable traders in the 5% club mostly trade daily charts. Lets see how we get on with it, I am open to guie and will continue to keep a journal of my trades here. I operate in Iraq at present, therefore have access but will post as often as I can.
I adhere into the DAILY charts and just trade in the direction of this WEEKLY SAR. I do not utilize another indictors. This seems to eliminate all of the emotions and will let me carry on with life with no glued regular. I have to test in the beginning of the daily candle to see whether an SAR sign that is opposite has appeared. 5 mins a day for consistant profit suits me fine. Evidently, the profits displayed here may not be to everyones taste, but I would rather have steady profit with less pips compared to fast profit (or loss). This trading style suits me and is what I am aiming for.


For the previous 12 Months Dec 07- Dec 08, the subsequent trades would have been put using this daily program on GBY/JPY:

20/12/07 Sell at 226.16
24/01/08 Close Trade in 208.84 = 1732
06/02/08 Economy at 209.28
14/02/08 Close Trade in 212.42 = -314
29/02/08 Economy at 208.73
28/03/08 Close Trade in 199.73 = 900
18/04/08 Buy at 203.78
08/05/08 Close Trade in 204.60= 82
23/05/08 Buy at 205.97
01/07/08 Close Trade in 211.31= 540
18/07/08 Buy at 212.16
03/08/08 Close Trade in 212.64 = - 48
03/08/08 Economy at 212.64
22/09/08 Close Trade in 195.38 = 1726
30/09/08 Economy at 187.64
27/11/08 Close Trade in 146.59 = 4105
02/12/08 Economy at 138.55 Running gram at 133.16 = 539 Pips on 25/12/08

Dec 07-Dec 08 complete = 9358 Pips (9 trades)

from these 9 trades, just 2 trades would have led to a negative yield.
Back testing since Dec 2004 we have the following trades and outcomes:

Dec 06 -- Dec 07 = 3888 (14 trades)

28/11/06 Buy at 224.97
05/01/07 Close Trade in 230.81 = 584
12/01/07 Buy at 233.91
01/02/07 Close Trade in 236.98 = 307
28/02/07 Economy at 231.73
19/03/07 Close Trade in 225.97 = 576
19/03/07 Buy at 225.97
20/04/07 Close Trade in 237.36 = 1139
29/04/07 Buy at 238.18
13/05/07 Close Trade in 238.44 = 26
18/05/07 Buy at 239.43
08/06/07 Close Trade in 239.60 = 17
14/06/07 Buy at 241.74
27/06/08 Close Trade in 244.46 = 272
01/07/07 Buy at 247.28
26/07/07 Close Trade in 247.64 = 36
26/07/07 Economy at 247.64
08/08/07 Close Trade in 243.75 = 389
12/08/07 Economy at 238.93
23/08/07 Close Trade in 232.66 = 627
19/09/07 Economy at 232.85
28/09/07 Close Trade in 232.64 = -21
30/09/07 Buy at 234.77
17/10/07 Close Trade in 237.74 = 297
30/10/07 Buy at 236.38
11/11/07 Close Trade in 230.65 = -573
11/11/07 Economy at 230.65
29/11/07 Close Trade in 228.53 = 212



Dec 05 -- Dec 06 = 238 (11 trades)

15/12/05 Economy at 208.36
13/01/06 Close Trade in 202.83 = 553
22/02/06 Buy at 207.22
27/02/06 Close Trade in 202.16 = -506
29/03/06 Buy at 205.57
21/04/06 Close Trade in 207.76 = 219
03/05/06 Buy at 208.63
10/05/06 Close Trade in 206.18 = -245
23/05/06 Buy at 210.04
21/06/06 Close Trade in 211.86 = 184
06/07/06 Buy at 212.18
10/07/06 Close Trade in 210.40 = -178
14/07/06 Buy at 212.71
28/07/06 Close Trade in 213.63 = 92
04/08/06 Buy at 217.00
18/08.06 Close Trade in 217.82 = 82
24/08/06 Buy at 220.27
05/09/06 Close Trade in 221.30 = 103
15/09/06 Buy at 221.70
16/10/06 Close Trade in 221.63 = -7
23/10/06 Buy at 223.53
14/11/06 Close Trade in 222.94 = -59



Dec 04 -- Dec 05 = 2155 (7 trades)

01/12/04 Buy at 196.72
21/12/04 Close Trade in 201.28 = 456
30/03/05 Buy at 201.61
21/04/05 Close Trade in 205.23 = 362
17/05/05 Economy at 196.54
13/06/05 Close Trade in 196.82 = 28
01/07/05 Economy at 197.59
27/07/05 Close Trade in 195.46 = 213
30/08/05 Buy at 198.68
12/09/05 Close Trade in 200.71 = 203
05/10/05 Buy at 201.04
07/11/05 Close Trade in 206.57 = 553
28/11/05 Buy at 204.93
14/12/05 Close Trade in 208.33 = 340

Back testing reveals mostly positive trades. In fact from a total of 41 trades since Dec '04, just 9 trades were closed in a loss. Largest drawdown was 573 pips during Nov '07. As a SL would obviously protects this drawdown's such. I am back examining using new parameters to determine which SL and TP levels work great for locking in profits. I will post the results using SL's and TP amounts as shortly as I can.

RULES:

Parabolic SAR settings: (0.02,0.20)

Assess the daily chart in the close/open of a new daily candle.

In case a reverse SAR is revealed, check against the weekly chart for overall trend.
When the weekly and daily SAR's are in agreement, enter the trade immediately at new candle.

Assess once a day in the open/close of this new daily candle and wait for a change SAR to appear.

If alteration SAR appears, DO NOT depart trade until conclusion of THAT daily candle, this is to ensure that this is a definite reversal signal as sometimes the SAR dot can repaint itself in the opposite direction. If this candle is complete and the upcoming daily candle appears EXIT THE TRADE.

Await the next DAILY entry sign.

EDIT: This program has been refined, check pages, 4 and 5 for newest version using 4hr SAR entrance with DAILY and WEEKLY SAR's.



Examples for Long and Short entrances: