STOP Manual Trading! This Range Breakout EA Is All You Need (10 Years Tested)

0:00 Hey guys, this is Rene. Today I want to talk about one of my all-time best trading strategies. It is range breakout expert advisor in USD Japanese yen. Right now, today I do have a trade open. This trade is 420 in profit in the moment that I'm speaking. And here you can see how the strategy looks like. But I will also show you long-term back test the exact settings that lead to this performance which went from like €50,000 to over €800,000 in the last about 10 years. This is tested on high quality data. So this is the best possible data quality and I will show you exactly the settings that lead to this. But before we start, let

0:45 me explain to you how the strategy works. So here you can see on my local PC I already prepared the back test with this exact strategy and to be honest it is a absolutely simple strategy. So let's have a look at one trade here I'm simulating now for the year 2024 and you can see here this strategy is very very simple. It just creates a simple range in the beginning of the day which means that we do mark the highest point and the lowest point between two times and then we trade breakouts. How does this look like? I can fast forward the test here. You can see as long as we see a breakout we will trade this uh breakout and on the first day we made a

1:31 small profit. On the second day here, we made a loss. But it's not about these single day profits or losses. It's about consistency. So if you trade this every single day, you will eventually have big profits like this. And this is where the strategy then makes the cut. So it is of course not a strategy that wins every day. It's the exact opposite. It's more likely, of course, that you see a stop-loss than a uh than a profit. And the reason for this is because we do use a fixed stop-loss to save our account, but we do not have a take profit. And for this reason, there can be losses, but there can also be extremely high

2:17 profits. And you can see here, here were more losses than profits. But still uh the count managed to be profitable at this point in this test. Okay. So let's have a look at the actual settings that I use here. Uh in my inputs you can see and by the way if you want to use this expert advisor yourself you can do it completely for free. So on my website which is en.bmtrading.de you can find all of my EAS also this one for free. You can use them in accounts with my partner broker. Everything is 100% transparent. You do not have any disadvantage if you take this deal. Make sure to read more on my website. And now

3:03 let's get back to the actual settings. By the way, I will link my website in the description, of course. So, here you can see all of the settings. So you can see in this specific test I use a volume percentage risk setting and I risk 1% for every single trade. So you could say this is actually even more on the conservative trading side because 1% risk per trade is not that much. [clears throat] Then we do have uh no TP. This is what I mentioned before. But we do have a stop-loss with a stop-loss factor of one, which means that the stop loss is at the other side of the range. I will s show in the back test again in

3:49 1 second how exactly this looks like in the chart. The times that I use for USD Japanese yen is from 3 to 6:00 in the morning and all of the positions will be closed and orders will be deleted at 6:00 p.m. in the afternoon or early evening. I do not use any trading stops and I trade only the first trade of the day. That's it. All of the other settings here, I do not even use them. So, I do not use any range filter or something else. This is really as simple as it seems here. It's one of the easiest strategies, but for me also one of the most successful. By the way, I also trade this strategy as I showed here in my live account. So, you can see this is not like some theoretical stuff.

4:35 I made actual money from this in the last two years also that I traded live in my personal account. So back to how this looks like in the tester. So you can see here I simulate again these trades uh in the strategy tester and you can see here exactly what I explained before from 3 to 6 in the morning it will find the lowest and the highest point in the in the during for for this day or during these times. then that it will create this visual range and then we trade the first breakout. As soon as there is a breakout the uh the the second stop order will be deleted. So we only trade the first trade. This is how I traded in my life account. And then here you can see even though there's no

5:21 TP at 6:00 p.m. all of the trades will be closed. Let's have a look at another day. So you can see here the range is created. This time we see a sell trade which immediately hits the stop loss and we will lose about €100 because I risk 1%. Of course there can be rounding issues or there can be a little bit like inaccuracies because of slippage but it's about 1% that we risk every single day. On the third day, you can see here again the range is created and then at 6:00 in the morning, 6:00 a.m. it will place the buy stop and the sell stop order. Stop loss for each order is at the other side of the range. And if I fast forward, as soon as one order is executed here, the buy order, the sell

6:06 order will be deleted. stop loss as always on the other side of the range. There's no management. There's no trading stop and we just wait until 6 PM. And yeah, like on on a day like this, you can really make a huge profit by risking 1%. You can make a profit of like uh 3.4% or even more. The best trades in the long-term back test, I think, made like like crazy profits, like 5 to 10 hours, like 5 to 10 times the risk. And this is exactly where the strategy shines. Of course, you will need an average of many many days. One single day is not really representative and that's why we should not bother with single days. But but let's have a look at longterm back test. And for this I

6:53 prepared here already another version of the EA. It's not actually another version. It's just a little bit optimized for the tester, but the inputs and and the functionality is completely the same. You can see here I use the same uh inputs and as I said you can also test it yourself on your own PC with the free version of this expert advisor which is actually the exact same version that I also use in my account. So it's not like a restricted version. It is the f full version. It's completely for free. So here you can see range EA USD Japanese yen. use quant um data manager data which is the ducascopy data which is the best data source for mat trader 5 back test and then here you can see also I will test from 2015 up

7:39 until 2026 so that's more more than 10 years a lot more and um yeah we will see the back testing results in a second I mean we see the actual result here before I showed it to you before but I will also show to you the time lapse how this evolved. So here we are. This is the complete back test. You've seen exactly how it works. Of course, it's uh benefiting a lot from the compound interest effect. This is why the performance is increasing a lot in the end. If I would have started like 5 years later this test, then of course the uh the graph look would would look different. But this is what compound interest is and

8:24 and the magic it brings kind of and how you can make out of a small amount of money like a crazy amount of money in in in about 10 years with a strategy like this. Of course, this is optimized for the past. No guarantees for the future. Um yeah, I hope you are aware of these kind of things and I don't I don't have to explain this. Um yeah, we also see that the last few um weeks were actually not good in this account uh in this strategy. So, it might be a good uh starting point now for you if there is a recovery in the future. And um yeah, as as I said, I I I'm I'm trading this in my life account currently about 450 euro up for the day, which is uh satisfying to me. I also traded in a few other symbols, but this is about USD Japanese

9:12 yen. So, if we have a look at the actual numbers here, we can also see what I explained to you before. It's not a strategy that is going for the the high win rate. Actually, we do have a win rate that is below 50%, but it doesn't matter at all because if we see here, the average profit trade with with 2,888 is a lot higher than the average loss trade with 1,800. So, this is how you make profits trading. It's not about the hit rate trade. It's not about the riskreward ratio. It's about nothing. It's about making money. So it's it's about the combination kind of about of hit rate and riskreward ratio and uh in the end it counts that you make money and not how these numbers look like. Profit factor 1.27 for me this is very very

9:58 good and yeah as I said the the data is the best possible data that you can get for back tests in the meter trader 5. Of course, this is not like 100% accurate when it comes to slippage and and stuff like that, but for me personally, the comparison of the test results with the comparison um or with the actual resets in my life account have shown great similarities. So, this is why I personally have quite a good amount of trust in long-term back tests with this specific strategy. So, this is all you need to know about the range breakout expert advisor in USD Japanese yen. The way I use it, this of course not a recommendation. Make sure to do

10:44 your own back test, but you can do long-term back tests with my free expert advisor. Check out the links in the description and get it from my website. It's really completely for free. You can use it in accounts with my partner broker. If you want to learn more, check out the link in the description. And now also I would be curious um about your opinion. Let me know in the comments if you believe this strategy can be more profitable in the future. I know that many many people many uh viewers of this channel already used it in their account and made huge profits with it. I got some messages and emails about this which makes me kind of happy. So yeah, let me know your experience in the comments below. And that's it. I will

11:30 see you in the next video. I'm out for today and yeah, have a great time. Good chats.