System Extensions Testing

As I had mentioned in an earlier post, we are working on a few system extensions that would hopefully smooth out the profits vs losses. I spent most of the day testing the auto trader created for our potential GBP/JPY daily time frame extension. The exciting thing about this extension is that it is NOT as heavily influenced by changes in markets. Using the same triggers over the last two years it has consistently returned profits. Keep in mind, this is an extension using a daily timeline. What that means is that while the majority of our trades are closed within just a few hours, this extension takes trades based off of daily signals and includes trades that are open for weeks and sometimes months. It has not been decided whether we will trade this extension. While the past returns are impressive, the downsides of having trades rolling over from one month to the next may out way the positives of a extension such as this one.

The extension trades the GBP/JPY. Here is the 6-month past performance, and the 24-month past performance.