Forex System Rules Update: Amazing Crossover (Version 3.0)

Thanks to the feedback I’ve gotten on my blog entries about the Amazing Crossover system, I’ve come up with a new set of adjustments for another version of the forex mechanical system.

Here are the rules for the Amazing Crossover system (Version 3.0) that I plan to run backtests and forward tests on.

Indicators:

EMA 5, EMA 10, RSI 9, parabolic SAR (0.020, 0.020, 0.200)

Entry Rules:

Go long on the open of the next candle when EMA 5 crosses above EMA 10 while RSI is moves above 50. Short on the open of the next candle when EMA 5 crosses below EMA 10 while RSI moves below 50.

Exit Rules:

Set an initial stop of 100 pips then switch to a 50-pip trailing stop once price moves 50 pips in the trade’s direction. Close short trades when the parabolic SAR forms three dots below the price and close long trades when the parabolic SAR forms three dots above the price. Exit open trades when a new valid crossover signal is made.

As I’ve emphasized in my blog entries, I’d like to keep things as simple as possible for now so that newbie forex traders can easily try it out. I’ll be running the tests on EUR/USD’s 4-hour time frame again, with backtests spanning a year’s worth of data and the forward tests for the month of September, so y’all better stay tuned!

In the meantime, you might wanna take a look at the original and tweaked version of the Amazing Crossover system:

Forex Mechanical System Review: Amazing Crossover System (Original)

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

  • Roberta

    Hi there, i have been following forex since 2010 on a demo account and has never been successful. Been using this system for quite some time but not always followed the rules. Now since 11th aug I took another demo account for 1000 and I already did 21% return using this strategy and following the exact rules. However I use a stop loss of 70 pips instead of 100 and I only had two losses due to a new cross over and not because the stop loss was hit. For every trade I was only ready to risk 2%. In your opinion should I open a real account? I am afraid that once I open a real account, I start making losses. What is you opinion pls?

    • roberta

      By the way, re 70 stop loss, when it 20 pips in my favour I adjust the stop loss to breakeven and when it is 50 pips in my favour , I just do the trailing stop.

    • DennyBahar

      hi! may i know which strategy do you use? the original amazing crossover or amazing crossover v3?

  • The Lazy Trader

    Hi thanks for sharing.
    Using a fixed stop loss will make your system inflexible to changes IIn volatility. As others have suggested in the past, you should use ATR measures. Newbie friendliness is useless if you make the newbies lose money in the end with a non-adaptable system.

    Cheers,
    LT

  • Riley

    Hi Robopip. Based on your testing, does the MA cross need to happen simultaneous with the RSI to qualify. The image below shows the MA cross happened just after. How would your backtesting of V3 have handled this MA cross on July 2nd 4hr chart?
    Thanks

    Riley

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