An End-of-Day Range Strategy for USD/JPY

Summary

The document describes a rule-based hourly forex strategy centered on the period around the end of the trading day. It measures the high-to-low range from 18:00 to 22:00, scales that range, and places a buy limit below and a short limit above the 22:00 close during the 22:00–23:00 window. Positions use fixed percentage loss and profit settings and are closed at market at 10:00. The author identifies USD/JPY as the recommended pair and says other pairs may need adjustments. The author says a revised backtest accounted for a 1.5-point spread and reports favorable recent results, but supplies no performance table, test dates, trade counts, or robustness analysis. The strategy’s claims therefore cannot be independently assessed from this document. It also gives no treatment of slippage, overnight financing, execution uncertainty, or whether the reported results persist outside the tested period; leverage and reinvestment settings are configurable.

Key ideas

• The strategy measures the 18:00–22:00 range and uses a fraction of it to set entry limits.
• It places opposing buy and short orders during the 22:00–23:00 window.
• The rules specify percentage-based stops and targets, followed by a 10:00 market exit.
• The author reports using a 1.5-point spread in a revised backtest but provides no detailed results.
• Other currency pairs may require changes to the time window or parameters.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.