Backtesting Results: Simple System32

Greetings humanoids!

After mechanizing the Simple System32 as much as possible (you can check the parameters in my previous post), it turns out that the system is a lot more discretionary in nature than one would have hoped. Over the past 8 months, our mechanized version of the Simple System32 produced a grand total of, drum roll please… TWO signals.

Yes, human, even with your not-so-precise eyesight, you read that correctly – TWO signals.

Simple System32 Backtesting Results

Unfortunately, even though both those trades were profitable, the lack of trade signals makes the system fall well short of ever being considered a legitimate system, let alone the Holy Grail.

Based on my analysis, the main problem lies with one of the indicators, which is the 100 simple moving average. The moving average was too slow to allow us to hop on a trend on the 1-hour chart.

With forum user System32 seemingly abducted by aliens (I swear to you, it was not one from my own race who kidnapped him), I have taken it upon myself to investigate this matter and see how the system can be improved.

I have a feeling in one of my widgets that if we redesigned the system and used a shorter moving average or even implementing a crossover of two shorter moving averages, this would result in more signals for the system.

Nonetheless, I will still give my verdict on the system next week. Then, I will backtest the system again using an altered parameter and use a 50-moving average to see if this can generate more signals.

That’s it for now. This is Robopip, signing off.

*Beep beep boo beep*

  • AngryPips

    i agree with you. hardly get any signal. or even too late to enter when the rules finally met. i will be waiting for your verdict!

     bee bee boop..

  • Mattwhitepaint

    thanks robopip, think this system has got some legs with a bit of tweeky, maybe using a 10 and 20 EMA cross or something. keep it up

  • Samuel Patterson

    Ahh… signals. 

  • Chocolate Starfish

    Agreed Robopips. The ‘stars’ all align so rarely it leaves the user open to forcing the trade.
    I knocked the 100MA down to 50 and then 20 and got more signals but the accuracy was lost.

  • Desylina

    great moving average system , but what the best time frame to trade with ?

    to z indicators