Aeron JJN Scalper EA - intraday scalping

The Aeron JJN EA is a simple scalping strategy using the Price Action method based on the JJN Scalper indicator, developed by a professional trader from Hungary. Sometimes a successful trading strategy does not need a bunch of complex and motley indicators, just a simple price analysis is enough. Today we will consider exactly such a strategy, the results of which are unlikely to immediately delight you, but definitely, if you look closely, you will be able to find hidden potential in it.

Aeron JJN Scalper EA

Aeron JJN EA settings

Aeron JJN EA does not have any very strict settings for work, except for trading time. For trading, it is best to choose currency pairs and assets that have a pronounced trend movement. Also experts recommend watching your pair for the most active movement during the day and activate the Expert Advisor at that time.

  • Timeframe: from M5 to H1
  • Trading hours: Europe and America
  • Currency pairs: any (except flat cross-courses)

Principle of Aeron JJN EA

The principle of the strategy in Aeron JJN EA is to analyze the price movement (price action) and to find in this movement certain patterns and recognizable patterns. Essentially, we are looking for a correction in the existing trend, and after its completion, we enter the position.

To begin with, let's take a look at the original indicator on which the Expert Advisor is based. When a signal appears on the chart, it shows a direction to enter a position and three price marks. The green marker shows profit level and the red one - the stop. In the middle is the signal line, at the crossing of which the Expert Advisor enters a position.

How the indicator in the Aeron JJN EA works
How the indicator in the Aeron JJN EA works

The rules of the strategy are simple enough:

  • If the body of the previous "bear" candle was larger than the specified range (parameter DojiDiff1), we wait for the opening price of the previous candle and buy.
  • If the body of the previous "bullish" candle has exceeded the specified range, we wait for the breakdown of its opening price and enter the sale.

Stop and profit levels are determined by the current value of the ATR indicator. Also, as an additional measure for fixing profits, a trailing stop is used.

Testing the robot according to the author's rules and settings

To check the stability of the results of the Aeron JJN EA, let's try optimization for 2015, and then check the results on the forward period. Here our task is somewhat simplified by the small number of parameters and the simplicity of the algorithm.

We will optimize the main parameter of the Expert Advisor - DojiDiff1which is responsible for the size of the correctional candle. If a candle of the specified size appears on the chart, the Expert Advisor sets a pending order at the level of its opening price. The second parameter, DojiDiff2The indicator does not need to be optimized, because it was taken over from the indicator and does not directly affect the entry conditions.

Aeron JJN EA settings
Aeron JJN EA settings

According to the results of optimization we got only one decent option with good profitability, moderate drawdown and DojiDiff1 value equal to 20 points. The forward period was selected from January to May 2016.

Testing of Aeron JJN EA by author's rules
Testing of Aeron JJN EA by author's rules

As can be seen in the graph, the results forward test are extremely unstable and in almost 5 months of trading the number of transactions was much less than expected. Of course, we are not satisfied with such results.

Refining and optimization of the Expert Advisor

Since the essence of the strategy is to determine the correction, the author does not recommend to enter against the current trend. This sounds reasonable, so before the next test we will make a small change in the code of the Expert Advisor in order to filter the signals directed against the movement of the main trend. We will use the 24-hour SMA (simple moving average) to determine the trend direction.

Refining and optimization of the Expert Advisor
Refining and optimization of the Expert Advisor

The optimization results already look much more stable, although they are still not perfect. At least the forward period has maintained the overall backtest dynamics, which is a sign that we have chosen the right direction for the development of the Expert Advisor. We invite you to continue and offer your ideas and final results.

Testing of the Expert Advisor with modifications
Testing of the Expert Advisor with modifications


JJN Scalper is a good basis for a scalping strategy, allowing to determine the current short-term price momentum with sufficient accuracy. Nevertheless, the author recommends to use additional trend filters and to limit the work of the Expert Advisor to periods of low liquidity. This idea is confirmed by history tests, which you can easily see for yourself by testing the Expert Advisor in the strategy tester.

Aeron JJN EA strategy has a great potential, but it requires additional research for its full disclosure. This being the case, as the advisor analyzes directly the price of the instrument, it has no problem adapting to almost any currency pair. The main thing is not to forget the main purpose of this strategy, namely, intraday scalpingThen you shouldn't be disappointed with the results.

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