Forex System Rules: Amazing Crossover System

Greetings, earthlings!

I’m back with another forex mechanical system to test this month. This time, I’m looking at the Amazing Crossover System from the Free Forex Trading Systems section of our forums.

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.

Amazing Crossover Example

Amazing Crossover Example

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!

  • ForExchange

    Hi!

    Don’t you think it is pretty much like the Cowabunga system? Only that this system seems to me a bit riskier as stop loss is 100 pips but reward is less usually and does not use stochastic as a confirmation (like the Cowabunga system).

    Actually have you written a review on the Cowabunga system? I would find it very interesting to read your own findings about it. Like it was a normal forum thread and you look at it as an outsider!

    Good backtesting!

  • http://www.hybrid-solutions.com/ Akram Majed

    Hi

    I did not have used system. Seems good one though. I know VertexFX platform that is quite packed with features and facilities. If you want to try yourself feel free to do so.

    Thanks,

    • Robopip

      Thanks for checking out my blog.

  • Robopip

    Thanks for sharing your thoughts! I’ll have the backtest results up in a bit, but I’ll look into that Parabolic SAR inclusion and profit target adjustment as well.

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  • AussieLad

    Hi Tareq, I like the idea of adding MACD and Parabolic SAR to the charts. What have you found to be good info for each?

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  • abnerb

    This system sounds really nice. I have been looking at all of the posts and charts and have noticed that a majority of set ups also have an elephant bar right before or right at the entry signal. Question, would this type of system also work on the 4 hour chart?

  • Ian Lavoie

    Thanks for this information. Could you elaborate on the system rules you used for your testing?
    1) Must the RSI cross 50, and the MA’s cross on the same bar, or must they just cross within N number of bars?
    2) Must the RSI have crossed after taking a run from a certain distance away from the cross line of 50? For example, if the RSI is 55, then dips to 49, then recrosses above to 53, does that last cross qualify as a “cross from below”? Intuitively it might not, but I’m most interested in what you programmed into your testing, since that is how the strong results were generated.
    3) Your post makes mention of a SL of 100 pips and a trailing stop of 20 pips. If put in place at the same time, the trailing stop would always be hit before the 100 pip stop. Does the trailing stop only get applied part way into the trade?
    Thanks for your time,
    Ian

    • Yhlas

      This question perfectly matches what I wanted to ask. Mr robot, please enlighten us when you have available cpu cycles.

      Edit: And if trailing stop is entered only after certain event occurs, is it dynamic or not?

  • chio

    Pls could someone answer Lavoie question

  • Pingback: Forward Test Results: Amazing Crossover System (Version 2.0) | Forex Blog: Art of Automation

  • Ted B

    Hi Robopip, Is the initial stop loss a hard stop? Because I noticed in your backtest results that the avg loss was less than 100 pips. I assume the trades were being closed for some other reason than price hitting the initial stop. Was it because of opposing signals?

    Another thing, is the trailing stop ordinary or is it adjusted in increments?