Forex System Rules: Amazing Crossover (Version 3.0)

The Amazing Crossover System has never failed to impress, even with the original and tweaked mechanical system rules, so I decided to do another round of adjusting and testing for this one.

If you’re just tuning in, you might want to review how the tests turned out for the previous versions of this system. Check out how the systems fared based on my framework:

Forex Mechanical System Review: Amazing Crossover System (Original)

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

Basically, what I’ve changed for the second version are the trading time frame from 1-hour to 4-hour charts, the addition of the parabolic SAR as an exit signal. But what I’ve noted in my latest review is that the 20-pip trailing stop tends to get hit around the same time as the parabolic SAR gives an early signal to close, which suggests that either one of these exit rules should suffice.

However, the trailing stop still does an excellent job at locking in profits along the way or closing the trade at breakeven when the pair is stuck in a range. With trades based on the 4-hour time frame and kept open for days though, I’m inclined to just widen the trailing stop to 50 pips in the event of a sudden price spike then keep the parabolic SAR as an exit signal. What do you guys think?

Of course I’m always open to your feedback and suggestions, as these help me determine what adjustments need to be made. Perhaps you’d like to do a review of the backtest results of both systems to help you come up with ideas on what can be tweaked:

Backtest Results: Amazing Crossover System (Original)

Backtest Results: Amazing Crossover System (Version 2.0)

I’ve gotten a few interesting suggestions, like adding MACD or using a dynamic trailing stop based on the current ATR. Of course I’d still like to keep things as simple as possible though so that newbies can easily try it out on their own or so that it can be programmable in an EA. Got any tips you’d like to add before I settle on the parameters in my next blog entry?

Stay tuned!

  • mark

    i think it works fine when you use the 4 hour time frame for opening in combination with the 1 hour timeframe parabolic as stop level of the position. it´s just because we all know a good trade enjoy you from the first minute a bad one turn never (or very rarely) into a good one. so cut it early.

    • Robopip

      Hmm, interesting. So 4hour chart for the entry signals then parabolic SAR based on 1hour price action? Yeah I do agree it’s better to exit early when it spikes up than crossing your fingers it still turns into a good one. Thanks for sharing your thoughts!

  • Tez

    Lets not over do it, KISS (keep it simple stupid), my experimenting, with other pairs as well so far is showing good results…….:) Tez

    • Robopip

      Ha, yes! Always a good rule of thumb when it comes to trading systems. Thanks for sharing your thoughts and for checking out my blog.