Forex Mechanical System Review: Amazing Crossover (Version 3.0)

Gather ’round, fellas! Let’s take a closer look at how the Amazing Crossover System (Version 3.0) fared in my forex mechanical system framework.

Before reading on though, make sure you check out the following blog posts first:

Forex System Rules: Amazing Crossover System (Version 3.0)

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

Forward Test Results (September 1, 2014 – September 25, 2014)

And now here are the grades!

Profitability: 18/20

Compared to the second version of this forex mechanical system, this particular one was able to generate higher gains for the yearly backtests. Although this third version churned out more losing trades and had a worse win ratio compared to the previous ones, it was able to reduce breakeven trades and convert most of those into wins! The forward test results were so-so though, as the system simply generated a little less than 1% in gains for three weeks.

Risk Tolerance: 19/20

I’ve observed that the adjustment from a 20-pip to 50-pip trailing stop did a betterĀ job of keeping trades open for much longer when trends are strong instead of getting positions stopped out on small retracements. The early exit rules from the parabolic SAR and new valid crossovers were still able to lock in gains along the way and pretty much served as additional measures for reducing exposure when price action started to reverse.

Newbie-Friendliness: 9/10

As with the Amazing Crossover System (Version 2.0), these rules might be a tad more complicated for a newbie forex trader to implement as the exit signals could get confusing. It’s not that easy to watch the 50-pip trailing stop, parabolic SAR, and new valid crossovers all at the same time!

Total Score: 46/50

All in all, the forex system scored a total of 46/50 as I think that it is slightly better compared to the second version I made. It might be worth looking into and programming in an EA for longer-term traders out there!

As some of my forex followers suggested in an earlier blog post, I’ll run a more comprehensive side-by-side comparison of the three versions of the Amazing Crossover System to give y’all a better idea of how they stack up against each other. Which among the three do you think came out on top?

  • Ian Lavoie

    Robopip, you do realize that what you are describing with these posts is
    the holy grail of trading systems? Any system that has a 23% profit over the year with only a 1% drawdown can easily be leveraged up x10, so that you get 230% on the year (uncompounded) with a very acceptable 10% drawdown. It seems strange that all the high powered institutional
    traders trading trillions of Eurodollars per day would have missed such a profitable variation of a moving average system.

    Are you sure that your backtest process is free of errors?

    • Abbas

      Hi Ian. I agree with you that there is something wrong!
      I tried to backtest the system over and over but couldn’t get even close to these backtests results!

      I asked Robopip if he could share a trade journal of one of the backtest results so I can check whether I am missing anything here!

    • pippi long stocking

      I also agree, I think these posts are made to lure people into fx trading. Have not been able to reproduce even close to the same results in backetests.

  • ForExchange

    Hi Robopip,
    I congratulate on the results.

    I am happy that you compare the three systems as slowly we are lost in the differences. Maybe you could make a table where all rules are seen for all three systems.

    You wrote for this last version that forward testing resulted only in a 1% gain. I would remind you though that forward testing included only three trades which is definitely not a large sample size to make definite conclusions.

    I like your trials and analysis, have a nice weekend,

    ForExchange

  • Riley

    Hi Robopip
    Can you share the 3 trades you took so that we can see the set up as well to assist us in qualifying future trades properly?
    Riley

  • Mario Alberto Medina Nussbaum

    I should suggest to continue forward test until middle november, because this month (October 2014) could be disruptive for some trend following systems, or at least I think that.

  • Pingback: Forex System Rules - Triple SMA Crossover()