Trading Strategies

Strategy AUD / JPY Wednesday | Day Trading Strategies

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AUD / JPY | Day Trading Strategies

Day Trading Strategies – this trading system exploits the tendency of the currency pair strategy  AUD / JPY (Australian dollar vs. Japanese yen) to be statistically low during the penultimate hour before applying the rate interest on Wednesdays. This particular week day was chosen because the interest rate is tripled on Wednesdays when compared with normal days (Saturday and Sunday interest are applied on Wednesdays). It is unknown why AUD / JPY, a couple with traditionally positive interest rate, is sold 1-2 hours before applying the interest. Perhaps traders (large hedge funds) with big bullish positions prefer this time to partially close their positions without affecting much marked. This strategy is implemented in the expert advisor fully automated for MT4 / MT5 platform.

Warning! According to the latest evidence of this strategy during the period from 2008-07-07 until 01/24/2014, is no longer profitable, generating significant losses. Do not use this technique in a real account! It can only be used for educational purposes.

Characteristics of Strategy AUD/JPY Wensday

  • The fundamental basis for trading.
  • The strategy is very simple.
  • Statistically perfect.
  • Only one position per week.
  • Strong changes in interest rates can affect it.

Strategy Set

  1. Operates only on Wednesdays.
  2. Open the hourly chart of AUD / JPY.

Entry conditions

At 15:00 ET (GMT-5 or GMT-4 during the summer) open the short position. No stop-loss or take-profit.

Exit conditions

When the new bar opens (16:00 ET) closing position.

Example of Day Trading Strategies

Strategy AUD / JPY Wednesday | Day Trading Strategies

Sample graphs show four Wednesday (14, 21, October 28 and November 4, 2009). The H1 bar occurred at 15:00 ET is marked with a red ellipse. I checked every Wednesday from 7 January to November 4, 2009 and the statistical benefit of selling during that time was 400 pips after 44 weeks is ~ 9.1 pip per trade, which is above the average spread of AUD / JPY (5 pips). Of course, there are some Wednesdays when the strategy results in loss but in the long term is beneficial.

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About the author

Saimon Akash

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