Forex Mechanical System Review: Amazing Crossover System (Version 2.0)

Greetings, earthlings! As promised, here are the grades of the Amazing Crossover System (Version 2.0) based on my Framework for Mechanical Forex Systems.

Before we get right to the numbers, make sure you’ve read the system rules and reviewed the backtest and forward test results:

Amazing Crossover System (Version 2.0) System Rules

Backtest Results (August 1, 2013 – August 1, 2014)

Forward Test Results (August 1, 2014 – August 22, 2014)

And now here are the grades!

Profitability: 18/20

As with the original Amazing Crossover System rules, this tweaked version churned out amazing results for both backtesting and forward testing. However, I deducted a few points since the second version had only 1.55% in profits for three weeks versus the 2.46% in gains for the original system.

Of course this was probably because this tweaked system generates fewer trade signals since it makes use of the 4-hour time frame. Apart from that, the rules are somewhat stricter with the addition of the parabolic SAR in exit signals.

Risk Tolerance: 18/20

Speaking of the parabolic SAR, I’ve observed that it adds to the 20-pip trailing stop in terms of early exits. More often than not, those signals to close early occur right around the same time! My thinking is that this could be preventing the system from staying much longer in some large trends. Which do you think should be adjusted, the SAR or the trailing stop?

As for the 100-pip stop, I think it is still appropriate given the change in timeframe, as it rarely gets hit. The losing streak and drawdown for both the backtest and forward test wasn’t bad at all, as there have been no consecutive losing trades!

Newbie-Friendliness: 9/10

These rules might be a little more complicated for a newbie to implement, as it involves more indicators than the original one. The exit strategies can be confusing for some, as you’d have to watch out for new EMA crossovers, the initial and trailing stops, and the parabolic SAR.

Total Score: 45/50

With that, the system scored a total of 45/50, which is still pretty good! While it does generate fewer signals and appears to be less profitable compared to the original Amazing Crossover System, it might still be worth looking into, especially for longer-term traders.

And if you’re wondering what the fuss is about over the original system, you should have a look at these previous entries of mine:

Amazing Crossover System Rules

Backtest Results (March 1, 2014 – June 1, 2014)

Forward Test Results (July 1, 2014 – July 24, 2014)

Forex Mechanical System Review: Amazing Crossover System

That’s it… and TGIF! I just learned this human phrase from Big Pippin, as he has been nagging me to go clubbing with him this Friday night. Now robots don’t really drink but we sure know how to dance so I’m gonna be signing off to practice my moves. Peace out!

 

  • hifamily

    good day before you sign off l want you to add some wonderful ingredient to it get “2 line MACD” with the setting 8, 17, 9 and another one 5,34,21 for fastEMA, slowEMA and signalSMA respectively. more also google for automatic fibonacci retracement add pivot point indicator (PP best result on brokers that open 21:00 GMT from experience Based on new York stock exchange closing time) l look daily, 4hour but l place trade from 15min with great success