1. SUMMARY

Poseidon is an offspring of famous Donchian Channel and Turtle Trading Strategies first introduced in Poseidon Strategy Rules and Test Results (1 March 2013). It is a trend following strategy aiming to capture a trend and not letting it go until trend fades.

The rules are simple and can be found in above mentioned article in detail. Shortly, it enters the market when 55 days’ highest or lowest value is breached. It has a initial stop loss and trailing stop depending on the ATR value of currency pair.

You can find test results of optimization of ATR values and proof that Poseidon works with wide range of stop loss and trailing stop values in Simple Money Management and Poseidon Test Results Revisited (1 April 2013). Also why I believe risking certain percentage of your equity is better than using fixed amount per trade explained in the same article.

I re-introduced my own system with my simplified rules in Poseidon Makes 50.000 $ to 360.000$ - Jforex Files Included (7 July 2016). I removed ATR calculation for every trade and started use fix amounts of pips for stop loss and trailing stop because I believed in further simplification. In any case, Poseidon works with wide range of stop loss and trailing stop values regardless of minor adjustments.

In this fourth article, I added money management module to my JForex files which enables to conduct your test by risking certain percentage of your equity and I will demonstrate the markets how Poseidon reacts to EURUSD and USDJPY and evaluate the Poseidon's performance.

I am also providing JForex files for every currency pair, so that you can also do your own test and adjust stop loss and trailing stop and other parameters as you like. Please use them to do your own experiments.

2. POSEIDON EURUSD TEST RESULTS

2.1 SETUP

Initial start deposit 100.000 USD.

Every trade is risks %3 percent of accounts' equity.

Buy when 55 days' highest is breached. Sell when 55 days' lowest is breached.

Exit with loss when 70 pips stop loss is violated. Exit with profit when 150 pips trailing stop is activated.

Test Period is between 01.01.2006 and 01.01.2016.

2.2 JFOREX FILE

EURUSD JForex file is placed in the forum. You can reach by clicking here.

2.3. RESULTS



Poseidon starts with 100.000 USD at 01.01.2006. Poseidon stops at 01.01.2016 with the equity reaching 535.456 USD.



The inclined equity line below of the test graphics, proves that strategy increases its profits continuously independent of EURUSD value and the profit is not coming from a cluster of trades in a limited time period. It gains profit steadily in different markets environments.

The stastistics are provided below.

Total Trading Positions : 146 trading positions
Total Profitable Positions : 62 profitable positions
Total Unprofitable Positions : 84 losing positions
Total Profitable Trade Percentage : %42
Longest Unprofitable Trade Streak : 8 losing trading positions in a row
Longest Profitable Trade Streak : 3 winning trading positions in a row
Total Pips Gained by Profitable Positions : 9756,2 pips
Total Pips Lost by Unprofitable Position : 5082,3 pips
Biggest Gain by One Profitable Position : 998,2 pips
Worst Drawdown Percentage : %32
Average Pips Gained by Profitable Positions : 157,36 pips
Average Pips Lost by Unprofitable Positions : -60,5 pips
Net Profit : 435.456,26 USD
Profit Factor : 1.91 (Based on pips earned and lost)


3. POSEIDON USDJPY TEST RESULTS

3.1 SETUP

Initial start deposit 100.000 USD.

Every trade is risks %3 percent of accounts' equity.

Buy when 55 days' highest is breached. Sell when 55 days' lowest is breached.

Exit with loss when 70 pips stop loss is violated. Exit with profit when 190 pips trailing stop is activated.

Due to different volatility of USDJPY a longer trailing stop value is used. This is also in line with the optimization results demonstrated in Simple Money Management and Poseidon Test Results Revisited (1 April 2013).

Test Period is between 01.01.2006 and 01.01.2016.

3.2. JFOREX FILES

USDJPY JForex file is placed in the forum. You can reach by clicking here.

3.3. RESULTS


Poseidon starts with 100.000 USD at 01.01.2006. Poseidon stops at 01.01.2016 with the equity reaching 279.209 USD.




The equity line below of the test graphics, proves that strategy sometimes suffer periods (2010) of drawdown. However, it manages to cover losses and profit more in the long run.


Total Trading Positions : 91 trading positions
Total Profitable Positions : 33 profitable positions
Total Unprofitable Positions : 58 losing positions
Total Profitable Trade Percentage : %36
Longest Unprofitable Trade Streak : 4 losing trading positions in a row
Longest Profitable Trade Streak : 3 winning trading positions in a row
Total Pips Gained by Profitable Positions : 7612,6 pips
Total Pips Lost by Unprofitable Position : 4045,8 pips
Biggest Gain by One Profitable Position : 999 pips
Worst Drawdown Percentage : %29
Average Pips Gained by Profitable Positions : 230,68 pips
Average Pips Lost by Unprofitable Positions -69,75 pips
Net Profit : 179.209,38 USD
Profit Factor : 1.88 (Based on pips earned and lost)


5. LAST WORDS

I demonstrated Poseidon works positively with EURUSD and USDJPY. Also looking at their drawdown, one can conclude that this strategies can be used in the same amount decreasing overall drawdown and overall profit.

As I adapted my strategy from famous Turtles' strategy, do not hesitate to alter my strategy do your own tests with JForex files provided.
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