System Review: Hybrid Scalping System

The Hybrid Scalping System by janpec1000 was crowned as the Best Forex Trading System for June. This mechanical trading system makes use of the Ichimoku Kinkyu Hyo indicator and incorporates seldom used indicators from other systems, such as the Trading Made Simple (TMS) and the Hopwood 10.2 system.

After coming up with a few tweaks to mechanize the system for easier backtesting and crunching the numbers on the 5-minute chart of EUR/USD for May 2013, here’s how the system fared:

Hybrid Scalping System Stats

As always, I evaluate these results based on my the Robopip Standard for Mechanical Systems.

Profitability: 19/20

With a huge 46.50% gain in just a month, the system gets a high score for profitability. Out of the 178 trade signals generated for the month, nearly 50% turned out to be profitable.

Keep in mind that, even though the system churned out a lot of buy and sells signals, the results only span a relatively short period of time. This means that the results could be a lot different if the system were backtested for over a year.

Nevertheless, the system did a great job in letting profits run. The maximum winning trade in pips was at 156 and the maximum winning trade in % was at 7.80%. Meanwhile, the average winning trade in pips was more than 20 pips, which yields a reward-to-risk of greater than 1:1 if you consider the initial stop loss of 20 pips.

Risk tolerance: 17/20

The way the system handles risk is excellent. If you look at the statistics, the average loss in pips was only at 9.10. This is more than half of the initial stop loss of 20 pips. I couldn’t give it a super high score because of the drawdown. Sure, it wasn’t very big, but it wasn’t small either.

Newbie-friendliness: 6/10

As for newbie-friendliness, I gave the system a relatively low score as it is a very intense scalping strategy, a different kind of charting system, and uses numerous and relatively unpopular indicators. This can be hard to understand for newbies who aren’t familiar with them.

Another issue I had with the system is that you had to be extremely fast with your trigger as you’re trading the 5-minute chart. It also follows that you’re watching price action 24/7 so that you won’t miss a single trade.

Total Score: 42/50

Despite its drawbacks and shortcomings, I think the system is a very good one because at the end of the day, it can make a lot of money. If you’re planning to study the system further and test it out on your own and perhaps even try to make money of it, converting it into a robot might be a better choice. After all, one cannot possibly take all the trades the system produces!

That’s it for this review. If you have any thoughts, comments, or feedback, feel free to leave ‘em below. I’ll be sure to read them!

10 comments

  1. bootmeneer

    I trade forex normaly cause its way more fun but,
    converting it into a robot might be a better choice
    sounds not bad to try out. What i just wonder how you make
    robots ? what do you need for it ?
    Can you maybe help a little with that Mr Robopip’s ;)
    Kind regards,
    Nick

    Reply
  2. irvinfitness

    I don’t think he created an EA. I’m almost positive that he mechanically backtests these, which is why he only tested 1 month for the 5 Min. chart. He simply mentioned that if you want to utilize this strategy on the short timeframes, you might consider creating an EA.
    Overall, these results are encouraging though, considering the modified rules. If you would like more support on the EA, you should try the main thread for the system and asking the creator or others that are actively trading. Maybe they already have something in the works. Good luck.

    Reply
  3. pipsy93

    “Keep in mind that, even though the system churned out a lot of buy and
    sells signals, the results only span a relatively short period of time.
    This means that the results could be a lot different if the system were
    backtested for over a year.”

    So why don´t you backtest a longer period? A month is not a significant timespan. And all the hard work is already done when the system is automatized.

    Reply
  4. Christina

    “on the 5-minute chart of EUR/USD for May 2013, here’s how the system fared:”
    you mean EURJPY?

    Reply
  5. Esteban Echevarria

    Hey Robopip! you analysis Is awesome I want to contact you but seems like there is not way to send you a private mail, why nobody never comment your analysis?

    I think you do an awesome job and Thanks!

    particulary this is the first time I feel we have a real winner for this topic.

    Is it possible you share the EA you made? I could have someone code it but if you did the job already maybe we can work on that one to make it better..

    my personal email is cheva282@gmail.com

    Best Regards

    Esteban

    Reply

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