System Review: CCI Coral Breakout System

Hello, earthlings. It is I, Robopip, and I have come to deliver the results of my CCI Coral Breakout System backtest.

Before you read on, I advise you to first read my previous post to know what parameters I used to backtest the system. I would also like to reiterate that I tweaked some of the original rules of the CCI Coral Break Out System to eliminate subjectivity. Hopefully, the results that I end up with more or less matches with yours.

Without further ado, below are the results. The system was backtested for around 3 months, from July up to the first week of September. Take note that there is a high possibility that my backtest results can be different from yours due to price feed discrepancies.

cci-coral-breakout-stats.png

Profitability: 15/20

The system may seem extremely profitable at first glance, but note that I did not include the spread in my backtesting. The spread, which can be around 2-3 pips for EUR/JPY for some brokers, can cut into the net pips gained by as much as 50%, assuming that each trade had a 2-pip transaction cost.

However, even if you factored in the transaction cost, you can still clearly see that the system would have been profitable.

I give the system 15 points for profitability.

Risk Tolerance: 17/20

The CCI/Coral Breakout system is quite impressive in limiting losses. It has a 25-pip stop in place, but upon backtesting it, it barely got triggered. There were very rare instances when trades got stopped with a full 25-pip loss and these happened on extremely volatile moves when price reversed immediately after getting triggered.

Travelkoen’s rules about exiting on new crossovers and when CCI hits +150/-150 were crucial in minimizing losses.

Seventeen points for risk tolerance.

Newbie-friendliness: 6/10

For the most part, I was able to backtest the system because of my newly-upgraded, super-fast dual core processor. But I can imagine keeping tabs on the 5-minute timeframe to be a daunting task for some human forex newbies.

Not to mention, the CCI and Coral are also “non-mainstream” indicators which could easily confuse people.

Total Score: 38/50

Taking into consideration the system’s profitability, risk tolerance, and newbie friendliness, I have awarded the CCI/Coral Breakout System with a grade of 38/50.

While it’s not Holy Grail of mechanical trading systems, it’s definitely a good system to try out. It’s profitable and has a low tolerance for risk. I think it’s an excellent system for scalp traders who are risk averse.

But of course, these are only based on the Robopip Standard for Mechanical Systems. I urge you humans to go forth and test it on demo accounts. See the results for yourself!

15 comments

  1. zsolt

    Guys…not counting with the spread I could make thousands of profitable systems. the problem is you cannot simply subtract spread from your results because sometimes you don’t get your target or you get stopped out due to spread and this fact completely changed your backtest results. this system can be a loser for this 3 months only because of the spread. Believe me I have backtested thousands of systems automatically (with and without spread).

    Reply
  2. zsolt

    however you could use this system with a broker which gives you intermarket prices and charges a fix monthly fee based on your trading volume. That sounds sensible because the fix fee can be simply subtracted from the results.

    Reply
    • Robopiprobopip Post author

      1137 is the total NET pips gained. It’s pips gained minus losses. Meanwhile, 11.31 is the average of pip gain of the winning trades only. Hope that clarifies things.

      Reply
  3. Lastshadow

    Hi Robopip,
    Just wanna clarify when you said:”exiting on new crossovers and when CCI hits +150/-150 were crucial in minimizing losses” . Does that mean you exited the trade once cci reached +150/-150 ?

    Another question is when u backtest, did you get in the trade the moment price cross over coral or after the candle close?

    Reply
  4. andrew

    I’ve created an EA (don’t ask I’m not sending it to anyone) based on the rules as outlined by Robopip. My backtest results:- 36.9% winners, avg profit: 11.3 pips, avg loss: 8.9 pips. Equity curve is a steady downward slope. Nothing to see here folks.

    Reply
  5. arendvsc

    Hi Robopip. I have a similar system but with 2 indicators added, different CCI settings and use only H1, H4 and Daily time frames. I tested manually over ten months, but would like to know is there a computer aid for backtesting?

    Reply
  6. zmolokoz

    Hi, understand that there are 2 indicators, coral & CCI. Can’t seem to locate coral indicator, any advice u could give?

    Reply

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