Forex Mechanical System Review: Amazing Crossover System

Greetings, earthlings! Here are my grades for the Amazing Crossover System based on my framework for mechanical system. Long story short, the results were amazing indeed!

Before reading on though, make sure you review the following blog entries:

Amazing Crossover System Rules

Back Test Results: Amazing Crossover System

July Forward Test Results: Amazing Crossover System

And now here are the grades:

Profitability: 20/20

Rarely do I give perfect scores for profitability, but this system definitely takes the cake! For the forward tests conducted over the first three weeks of July, the Amazing Crossover System yielded 246 pips or 2.46% in gains. For the backtesting period of March to June 2014, the system churned out an impressive 961 pips or 9.61% in gains.

Apart from that, the system had a pretty high win ratio and very few losses. In fact, over the backtesting period, the initial stop was triggered only twice! As I mentioned in my previous entries, the trailing stop does a pretty good job of protecting profits and locking in gains as price moves in the trade’s favor.

Risk Tolerance: 19/20

The Amazing Crossover System also has a solid risk management strategy in place, as the 20-pip trailing stop locks in gains along the way and allows for an early exit during volatile market situations. The RSI also does a good job of filtering out trade signals during times of consolidation.

The initial 100-pip stop rarely gets hit, although I can’t help but wonder if the results would be the same if the original stop is set at 50 pips to make for a potential 2:1 return with the same 100-pip profit target. Anybody care to backtest or forward test?

Newbie-Friendliness: 10/10

The system rules are fairly easy to understand and implement. Newbies with a good understanding of basic technical indicators can make use of this simple yet profitable system.

Total Score: 49/50

All in all, this is probably the highest grade any mechanical system has ever gotten in my framework. Not only does it generate decent profits, but it also has an effective risk management plan and is easy for newbies to understand… Amazing indeed!

If you’re interested to see more backtesting results, you might wanna take a look at my forex mechanical system review for the Amazing Crossover System nearly three years ago.

It looks like some of my readers have also gotten positive results from this system. Could this be the Holy Grail system that we’ve been looking for? Don’t be shy to share your thoughts on this trading system in the comment box below!

 

  • Jerpell

    I have used these identical rules but on the 4 hour chart instead of a 1 hour chart with almost a 94% win rate. The 4 hour chart almost never lies, when the EMA’s cross load up the contracts and back up the truck. I get at least 3 good trade a week, I am a 20 contract trader so that is really all need. If I were a newbie this is the system I would gravitate to because of its simplicity…Please don’t make trading any more complicated than it should be.

    • Ivan

      Wich pairs do you look on the 4 hour charts?

    • Łukasz Domański

      hi! I’m interested in applying this strategy to 4-hours chart. How do you set your S/L and T/P?

      • Daniel

        Also interested to know. I think ATR could be useful for targets and stops

        • Robopip

          Good idea! I’ll look into the daily and weekly ATR of EUR/USD.

      • Robopip

        Hmm, yeah it might be worth looking at for the 4-hour chart. Think I should adjust the SL and TP wider though?

  • Dan

    I like the idea of this but determining targets and stops based on underlying volatility rather than fixed targets. Volatility is a lot lower than usual of late so using ATR to determine targets and Parabolic SAR to trail stops a bit closer could be good enhancements

  • bellamy_fx

    I’m not getting anywhere near the same results as your testing. I think I’ve got the entry criteria implemented correctly (MAs crossing on same bar as RSI crossing 50) but what are the specifics of moving the stop, and the specific exit conditions?

  • bellamy_fx

    What do you do when you get another trade entry signal if you’ve already got a trade open? Signals: In same direction? In opposite direction?

  • Robopip

    Nah, I just started with the RSI and MA. I’ve been reading up on those comments regarding MACD too and I’m thinking of including it in another set of backtests. I’ll keep you posted!

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  • Robopip

    Interesting! I’ll look into this. Thanks for sharing.

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  • Tainan Lucas

    I’ll try this one. Also gonna take a look at the 2.0 and 3.0.

    Thank you! Good review

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