I did some backtesting on EUR/JPY and the results are amazing!!!!
I ran through a few different sets of rules since the Sunday candles are so big on that pair and came up with these new rules, which are slightly different from what works best on GBP/USD.
Entries - Same as GBP/USD - 10 pips above/below the Sunday candle.
Stoploss - The opposite entry point. This is NOT the same as GBP/USD! The normal rules are the other side of the Sunday candle, but this is 10 pips past the other side of the candle. This extra buffer is very important for EUR/JPY because of the larger price swings.
Takeprofit - Same as GBP/USD - 1/2 the weekly ATR(14)
Breakeven - 1/4 the weekly ATR(14). 2x the stoploss didn't work here. That was too high a number because of the large candles.
Here are the results. Keep in mind these are only for this year, and may not hold up over the long term. I haven't gone back any further than a year yet, and probably won't for a while... It takes way too long to backtest moving from the mouse to the keyboard every 10 seconds with one hand...
Compounded return rate - 87.6%!!!
R multiple- 34.18R
Win rate - 14 winners, 24 losers = 37% (BE's not counted)
I'm going to trade both GBP/USD and EUR/JPY tomorrow, risking 1% per trade on each pair.
EDIT: If anyone saw these numbers earlier I had a math error and corrected it. That's why the numbers dropped a bit.. 