According to system owner ForexPhantom, he got the idea from another forex site but added some tweaks to make it more effective. The rules are pretty straightforward and it makes use of basic technical indicators, such as the EMA and RSI.
A buy signal is given when the 5 EMA crosses above the 10 EMA while RSI must cross the 50 level from below. A sell signal is given when the 5 EMA crosses below the 10 EMA while RSI must cross the 50 level from above.
Exit rules are also clearly specified, as the owner recommended a 50-100 pip target and an initial stop loss of 100 pips. Profit protection is also incorporated with a 20-pip trailing stop.
This system can be applied on EUR/USD’s 1-hour forex chart so I’ll go ahead and use that for my backtesting and forward testing over the next couple of weeks. Check out this thread on the Amazing Crossover System for more tips from ForexPhantom if you wanna try the mechanical system out!