GBPJPY move downward are much faster then GBPUSD moveup, whilst USDJPY may not equavalent the speed moving down as GBPJPY. So, you may hit a margin call that time. Unless you have an account size of 50k, you only trade <5k(less then 10%) with 1:100 leverage. MAY BE will survive. On the other hand, what IF GBP cut rate... or JPY raise rate? I think your strategy still too early to decide whether its good. May be you need a carry trade backtester. If I'm not mistaken there is a commercial service, but I cant remember who did that. Or if you can write a simple backtest routine that will joint a 3 backtest report into 1, then you'll be able to record their drawdown, equity maximal drawdown, and realized drawdown. Will be much more accurate compare to few weeks forward testing. As you mentioned, it takes a year to figure out whether it gaves you 30%. Therefore, before you able to withdraw all your capital, you need atleast more then 3 years of profit, to barely survive 1 full stop(wipe out, or Margin Call in FXCM) that will not harm your initial capital. Am I worrying TOO much? Just my two pips. Hope this will not offend anyone.

Regards

David

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"All through time, people have basically acted and reacted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why the numerical formations and patterns recur on a constant basis." - Jesse Lauriston Livermore
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