The best indicator for GBP/JPY
We backtested 382 indicators across daily, weekly and hourly charts on real GBP/JPY history. Here's what actually worked — risk-adjusted, out-of-sample, with costs.
Fisher Transform
On the daily chart, this is the strongest risk-adjusted edge we found for GBP/JPY over ~23.2 years — beating buy-and-hold by 10.5% CAGR.
Best multi-indicator combo
Going long only when all 2 agree was the strongest confluence setup we found for GBP/JPY — beating buy-and-hold by 10.1% CAGR, out-of-sample. Fewer, higher-conviction trades than any single indicator.
The winner on each chart
Every indicator, ranked
Ranked by Sharpe (risk-adjusted return). Hypothetical, fees included.
| # | Indicator | TF | CAGR | Sharpe | Max DD | Win | Trades | vs B&H |
|---|---|---|---|---|---|---|---|---|
| 1 | Fisher Transform ✓ | Daily | 11.1% | 1.34 | -37.9% | 37.3% | 565 | 10.5% |
| 2 | Parabolic SAR (fast) ✓ | Daily | 9.8% | 1.19 | -39.8% | 41.1% | 421 | 9.2% |
| 3 | DMI Direction ✓ | Daily | 8.4% | 1.16 | -17.5% | 32.5% | 265 | 7.8% |
| 4 | DeMarker (7) ✓ | Daily | 6.8% | 0.87 | -42.5% | 38.5% | 397 | 6.2% |
| 5 | Parabolic SAR ✓ | Daily | 6.7% | 0.85 | -35.4% | 42.6% | 265 | 6.1% |
| 6 | Vortex (7) ✓ | Daily | 6.0% | 0.76 | -39.7% | 40.0% | 400 | 5.4% |
| 7 | Impulse MACD ✓ | Daily | 3.8% | 0.74 | -21.4% | 32.2% | 338 | 3.2% |
| 8 | Woodies CCI ✓ | Daily | 4.9% | 0.72 | -32.4% | 39.1% | 481 | 4.3% |
| 9 | ADXR ✓ | Daily | 3.8% | 0.67 | -22.9% | 33.0% | 176 | 3.2% |
| 10 | DeMarker (14) ✓ | Daily | 4.7% | 0.65 | -33.0% | 36.2% | 276 | 4.2% |
| 11 | CCI (14) ✓ | Daily | 4.5% | 0.6 | -31.8% | 38.1% | 339 | 3.9% |
| 12 | Random Walk Index ✓ | Daily | 4.2% | 0.57 | -35.6% | 40.4% | 265 | 3.6% |
| 13 | Random Walk Index ✓ | Daily | 4.2% | 0.57 | -35.6% | 40.4% | 265 | 3.6% |
| 14 | CCI (30) ✓ | Daily | 3.7% | 0.53 | -22.1% | 30.3% | 234 | 3.2% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
For GBP/JPY, Fisher Transform on the daily timeframe gave the best balance of return and risk in our test. It beat buy-and-hold — but remember: this is a hypothetical backtest of a standard rule, not a recommendation. Markets change. See the methodology and disclaimer.
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