Salutations, dear earthlings! It's time for us to zoom in on the winning mechanical system for July to see whether it's indeed the Holy Grail or not!
After bagging the crown for June's Best Forex Trading System of the Month contest with his Daybreak System, pipwoof is at it again with another winning system for July: the Triple Threat Exit Strategy. What's particularly interesting about these two systems is that they can be combined to come up with entry and exit strategies. Pretty cool, huh?
While the Daybreak System focuses on trade entries, the Triple Threat Exit Strategy specifies three potential exit scenarios, as the name suggests. Without further ado, here are the details of the mechanical system:
1. Go long at the previous day high plus one pip.
2. Short at the previous day low minus one pip.
3. On Mondays, go long at Friday's high plus 11 pips or go short at Friday's low minus 11 pips.
1. Use three stop losses for your trade, one for each position (the size of which depends on your risk tolerance).
2. Place the initial stop loss on all three positions in the nearest quarter psychological level (00, 25, 50, 75) above/below a 25-pip allowance. For example, a short at 1.0213 would yield a stop loss of 1.0250.
3. The initial stop loss is the only one set in stone at the start of the trade. Trail the second stop loss every succeeding 25 pips and trail the third stop loss every 50 pips.
As though providing detailed instructions on setting entry orders and stop losses aren't enough, pipwoof has also provided backtesting results for EUR/USD, AUD/USD, GBP/USD, and GBP/JPY! Here's a summary of the results for July from his recent post on his Triple Threat Exit forum:
Although my processors can take a break from mechanizing and backtesting thanks to pipwoof, I'll still take a look at some numbers to explore other performance metrics that you humanoids seem to like. This includes the win rate, average pips gained or lost, and even the largest drawdown.
Stay tuned you must, Earth being, for the backtesting results that I will be posting next week. After that, I'll stay in my pod once more to grade the system based on Robopip's Framework for Mechanical Systems.
I'll be signing off for now as I monitor humankind's progress on landing Curiosity on Mars, but don't hesitate to leave a thought or two on the comment boxes below!
- Winner: July's Best Forex Trading System 07:34 01 August 2012
- System Review: Triple Threat Exit Strategy 19:53 13 August 2012
- Best Forex Trading System: July Contest Still Ongoing! 23:55 10 July 2012
- Vote for July's Best Forex Trading System 22:24 23 July 2012
- Winner: June's Best Forex Trading System 23:32 03 July 2012