Here is a somewhat interesting trading rule for the JP225 stock index CFD.
In the top-left corner of the chart, I have included the performance results from July 2025 to the present.
In summary, the total number of trades is 147, the win rate is 36%, and the payoff ratio is 3.2.
Please refer to the attached chart for further details.
Indicators used:
ADR +100% line
ADR +50% line
ADR −50% line
ADR −100% line
Instrument:
JP225 stock index CFD
Timeframe:
One-hour chart or lower (performance was measured on the 15-minute chart).
Entry conditions (long positions only; short conditions omitted):
Place a buy limit order slightly above the ADR +100% line by 08:30 Japan time.
Limited to one trade per day.
Exit conditions (long positions):
Place a stop-loss order slightly below the ADR +50% line,
or close the position at 06:00 Japan time the following day.
If the pending buy limit order remains unfilled, it is cancelled.
Stop loss:
A stop-loss order placed slightly below the ADR +50% line.
Position size:
1% of account balance per trade.
Important notes:
The performance measurement period corresponds to a time when both the weekly and daily charts were in an uptrend.
As the results indicate, short trades are only marginally above break-even.
It is uncertain whether this strategy will remain effective in the future.
At present, it appears highly promising; however, the statistical sample is insufficient.
Please conduct your own backtesting and verification before using it.
However, I believe that by adding a trend filter and a VIX filter, the rule may remain effective going forward.
I have stopped holding positions overnight while asleep. Thank you for your understanding.
Use a trading rule that fits your own daily routine.
JP225 ADR Extension-Based Momentum Model
1- These users thanked the author funchi for the post (total 3):
- Curioso, LittleCaro, Nabs
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I will not create indicators without the publication of a trading system.
While I am motivated to develop greedy systems for trading systems that are already satisfactory,
I will not assist with the development of your trading systems.
Please publish your trading system first before requesting the creation of indicators.
funchi
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I will not create indicators without the publication of a trading system.
While I am motivated to develop greedy systems for trading systems that are already satisfactory,
I will not assist with the development of your trading systems.
Please publish your trading system first before requesting the creation of indicators.
funchi
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