System Review: Triple Threat Exit Strategy

Greetings earthlings! I have returned from my pod and am finished grading pipwoof’s Triple Threat Exit Strategy system.

The strategy is a combination of using pipwoof’s Daybreak system for entries, then using three different stop loss points for exit points. To learn more about the system, read last week’s post, you must.

According to pipwoof, the Triple Threat Exit Strategy made him an incredible 31,000 pips over 18 months over a variety of pairs. Even for alien standards, I must say that is superb! With those types of results, I could upgrade my processors every month if I wanted to!

Pipwoof also shared his results for July, which I tweaked a bit to reflect a maximum 25-pip stop loss and with all three positions being equal to a 1% position.

triple_threat_stats2.png

Profitability: 15/20

Even after adjusting for the mechanization of the system, the pair still seems to be quite profitable despite having a sub-50% win rate at 41.17%. Because it employs a rather tight stop loss and aims for big wins, the pair is able to churn out a respectable average pips gained to average pips lost ratio of 46.43 to 12, or almost 4 to 1. This helps ensure the long-term viability and profitability of the system.

Even more impressive was the total percentage gain for the month. On EUR/USD alone, the % gained by the system stood out at 8.51% (216 pips).

Of course, this is just one month’s worth of data. This doesn’t mean that it was or will always be this successful. Also, if we see a ranging environment, this system may miss out on making pips or worse, even be susceptible to fake outs.

Risk Tolerance: 18/20

This system has an effective risk management plan in place as it makes use of – not one, not two, but THREE – stop loss points. This allows the system to lock in profits as the price moves in its favor and is able to cut losses in case it doesn’t.

On top of that, the rules allow the user to move the stop loss to breakeven right away, leaving a risk-free trade later on. This allows the user catch what you humans call “homerun” trades. In fact, the majority of gains for this system were thanks to one trade which resulted in a 122-pip win!

Newbie-friendliness: 6/10

Although the rules of the system are pretty easy to understand, it might be a little confusing to manage three open positions all at the same time! Of course that’s not a problem for a robot like me since I can construct an EA to automatically monitor all three positions, but I understand how programming one might be tough for a newbie trader.

On top of that, this system seems hard to manage if your eyes aren’t glued to your trading platform while your trades are open. Again, an EA could solve this particular problem but this might not be an option for most newbies.

Total Score: 39/50

Combining all the points for profitability, risk tolerance, and newbie-friendliness, the Triple Threat Exit Strategy has garnered a total of 39/50 . I believe that’s one of the highest grades I’ve given so far!

Does this mean we’ve found the Holy Grail?!

While this system has a solid profitability record in the past and has a bunch of airtight risk management rules, it does present a few challenges particularly for newbies. I wouldn’t call it the Holy Grail system just yet but, I must admit, it does have my robot sensors tingling!

I urge you, dear human, to try this system out for yourself on demo or conduct a few backtests in order to determine whether it’ll work for you or not. Who knows? You might even come up with a few tweaks here and there to make it even better. When you do, make sure you share with the rest of us, okay?

‘Til then, this is your friendly Robopip signing off!

  • Filson

    I spend some quality time coding up this one myself, but I’m getting nowhere the same theoretical performance pipwoolf or you, Robopip state. There’s a bunch of early exits not recorded by pipwoolf and the non-pyramiding style of loading Air and Retrace hurts the equity a lot.

    What system do you use to test/write the EA in, Robopip?
    Not to forget, what kind of galactic pip feed do you work on?
    Cos my tick data is hurting the system pretty badly.

  • Day Trading Software

    Thank you for your help, your article, and your integrity.. really a great post and I am looking forward to same from you

  • Megaforex

    Great analysis thank you