AUDJPY Follow Driver — Research Method and Paper-to-Demo Transition

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AUDJPY Follow Driver Research Branch

The Follow Driver research branch studies whether movement in one financial instrument can provide an early indication of a delayed movement in another related instrument.

The current implementation uses AUDJPY as the follower instrument. The system also monitors AUDUSD and USDJPY as driver instruments.

AUDJPY is influenced by both the Australian dollar and the Japanese yen. A strong and coordinated movement in AUDUSD and USDJPY may therefore create conditions in which AUDJPY reacts with a measurable delay.

The robot attempts to identify this temporary timing difference and open a paper position in the direction of the expected continuation.

Current Versions

Two SELL-only versions are currently being observed:

  • AUDJPY Follow Driver SELL V0.2
  • AUDJPY Follow Driver SELL V0.3

Both versions use the same basic follower-driver concept, but their timing and trade-management parameters are different.

V0.2 — Conservative Configuration

Version V0.2 waits longer before confirming an entry. It uses a smaller profit target and closes positions more quickly when the expected movement does not develop.

This creates a more conservative research profile. The version is designed to avoid entering too early and to reduce exposure to prolonged uncertain movement.

V0.3 — More Aggressive Configuration

Version V0.3 enters earlier, allows a longer holding period and attempts to capture a larger price movement.

This may increase the potential reward when the driver signal is correct, but it may also increase exposure to false continuation signals or delayed reversals.

Week 31 Result

During ISO Week 31, V0.2 closed two paper trades and produced approximately +6.19R. One trade reached its target and one was closed after reaching the maximum holding period.

V0.3 also closed two trades and produced approximately +3.38R, with one profitable trade and one losing trade.

The V0.2 result exceeded the current weekly research reference of +5R. However, two trades are not enough to demonstrate stability. Both versions will therefore continue to operate in parallel in the paper research environment.

Why V0.2 Was Selected for Demo Observation

V0.2 was selected as the first version to move into a separate broker-demo observation stage because it combines a positive initial result with a more controlled entry and exit structure.

This decision does not mean that V0.2 has been declared a completed or profitable trading robot. It means only that the version is currently suitable for checking whether the internal paper model behaves similarly when connected to a real broker demo environment.

V0.3 remains active as a research version. Its earlier entry and larger movement target may still prove useful under different market conditions.

Paper Research Will Continue

The demo robot does not replace the paper versions.

Three separate processes are planned:

  • AUDJPY Follow Driver V0.2 PAPER;
  • AUDJPY Follow Driver V0.3 PAPER;
  • AUDJPY Follow Driver V0.2 DEMO_ONLY.

Running the paper and demo versions in parallel will make it possible to compare the internal model with broker-side execution.

Demo Preparation

Before creating the demo version, the environment was checked to confirm that:

  • the connected MT5 account is a demo account;
  • trading is enabled;
  • Expert Advisors are permitted;
  • AUDJPY is available for trading;
  • the minimum available position size is 0.01 lot.

The V0.2 paper logic was exported separately before the demo version was prepared. This was done to ensure that the demo robot reproduces the existing research logic rather than using an approximate reconstruction.

The demo version uses:

  • the same AUDJPY follower instrument;
  • the same AUDUSD and USDJPY drivers;
  • the same SELL-only direction;
  • the same entry conditions;
  • the same target and exit logic;
  • the minimum available demo lot of 0.01.

Safety Controls

A separate demo-only script and a separate scheduled task were created. The launch configuration was deliberately left in a safe disabled state.

  • the scheduled task was created but remains disabled;
  • runtime control is set to armed = false;
  • the robot cannot send an order without a separate authorisation step;
  • protection against old signals was added;
  • signals generated before activation cannot be used to open a new position.

These controls are intended to prevent an accidental order during system startup and to ensure that the first demo trade is based only on a fresh signal received after activation.

Purpose of the Demo Stage

The purpose of demo observation is not to maximise profit or accelerate the promotion of the robot.

The main objective is to compare:

  • paper entry time against broker execution time;
  • paper entry price against the demo fill price;
  • spread and price movement at the moment of entry;
  • paper exit against broker-side exit;
  • holding time and final R result;
  • any difference caused by execution conditions.

This stage represents a controlled transition from internal paper simulation to broker demo execution. The paper research remains the reference model, while the demo version is used to test operational behaviour.

Current Status

  • V0.2 PAPER: active research observation
  • V0.3 PAPER: active research observation
  • V0.2 DEMO_ONLY: prepared but not yet activated
  • Live trading: not permitted

The next step is to verify market conditions and the demo account status before activating the demo task. No demo order will be allowed until the runtime permission is intentionally enabled.


Risk notice: The Follow Driver method remains experimental. Positive paper results from a small trade sample do not demonstrate future profitability.

Weekly Report 31
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