Forward Test Results: Triple SMA Crossover Version 2.0

Did the forward test on the Triple SMA Crossover Version 2.0 forex mechanical system yield improved results? Before taking a look at the numbers, make sure you’ve read the following blog posts first:

Forex System Rules: Triple SMA Crossover Version 2.0

Triple SMA Crossover Version 2.0 Backtest Results

Unlike the original version of the system which yielded absolutely no valid trade signals for the forward test, this tweaked version was able to catch one!

EUR/USD 4-hour Forex Chart

EUR/USD 4-hour Forex Chart

As you can see from the 4-hour forex chart above, the signal popped up at the start of the month for a short entry at the open of the next candle, which was at 1.2502. Price dipped to a low of 1.2359 in November 7 before the 200-pip trailing stop eventually got hit at 1.2559 on November 17. That’s roughly a 0.3% loss for the month.

That’s not so bad, right? As I’ve mentioned in my backtest review, this forex system might need an actual profit target instead of just keeping the entire open until the trailing stop gets hit. I don’t want to give up on this forex system just yet since it could still deliver promising results with a few more adjustments so let me know if you have any recommendations!

  • ForExchange

    Hi Robopip,

    well, I am not sure about your results. You say -57 pips is not bad. It is not really good either as it is still a loss.

    Many readers gave recommandations some weeks ago and you did not use any of them. So just go back some blog posts a couple of weeks in time and you will get many ideas how to improve the system.

    Have a nice weekend,
    FE

    • Hey there! I actually used your suggestion to have a 5-10-20 SMA and I think it did show some improvements (compared to longer-term SMAs which didn’t generate a signal for the forward test)