Heads up, system traders! I’ve rounded up the SEVEN mechanical forex strategies right here to see how they stack up against each other.
I’ve got a neat systems snapshot table for their latest performance down below, but keep in mind that the time periods and some trading assumptions vary among my fellow FX-men.
HLHB Trend-Catcher System
The Huck Loves Her Bucks mechanical system uses a simple EMA cross method, combined with the RSI and ADX indicators, to catch short-term trends on the 1-hour charts of EUR/USD, GBP/USD, and USD/JPY.
This week Huck was able to cash in on last week’s promising open trades, getting a neat +292 pips from closing three positions. Problem is, she’s stuck with two conflicting positions for the week ahead. Read more.
Happy Hunter Trading System
Happy Pip has recently ventured into mechanical trading strategies and has since come up with a day-trading system that uses HHHL, LHLL, and IB candlestick patterns for entries.
Her system comes in two types:
- The Happy Hunter Price Action System 4.0 (Fixed TP Variant)
- The Happy Hunter Price Action System 4.0 (Trailing Variant)
The Happy Hunter is currently being forward-tested exclusively on GBP/NZD, with future plans to include more pairs. Also, each and every trade generated by her system incorporates a fixed 12-pip spread to simulate real-world trading conditions on a fixed spread broker.
Anyhow, it was a really terrible week for both Variants of the (not so) Happy Hunter Trading System, with the Fixed TP Variant down hard by 5.04% for the week, while the Trailing Variant suffered 6.92% in losses. And this past week’s losses were enough to erase three weeks worth of gains and push both Variants into negative territory for the month. Read more.
SMA Crossover Pullback
This newbie-friendly SMA Crossover Pullback trading system by our resident machine Robopip is as simple as its name suggests. This strategy features an SMA crossover method to gauge the trend and a stochastic pullback entry signal on the 1-hour charts of EUR/USD, GBP/USD, and EUR/JPY.
This strategy made a strong comeback by catching a full win on Cable for the past week, adding 300 pips or a 2.00% gain to the account. Sideways action still seems to be in play for the other pairs, though. Read more.
Short-Term Bollinger Reversion Strategy 2.0
This Short-Term Bollinger Reversion Strategy 2.0 is one of Robopip’s newest creations and is currently being tested on range-bound pairs like CAD/CHF and USD/CAD.
It was able to catch a few more signals than usual, but consecutive positions being opened led to tiny losses. Fortunately a couple of big wins on both pairs still allowed the strategy to stay in the black with an 18.5-pip win or a 0.37% gain for the period. Read more.
Inside Bar Momentum Strategy 2.0
Another tried-and-tested system is Robopip’s Inside Bar Momentum Strategy 2.0 which monitors purely candlestick price action, free of any technical indicators, on the 4-hour charts of GBP/JPY and USD/JPY.
Both pairs showed a bit more red than green for the past few days, but one big win for each still made up for all the losses. In total, the system ended up with a 44-pip gain for the period. Read more.
This good ol’ classic Cowabunga System (that’s been raking in pips since ’07!) looks at the 4-hour chart for the main trend and the 15-minute chart to catch entries. It also makes use of EMA crosses, along with RSI, MACD, and stochastic indicators.
Pip Surfer seems stoked about back-to-back wins on his latest positions, snagging a neat 77-pip gain in this week’s Surf Reports. Read more.
Forex Systems Summary
|Mechanical Trading System||Time Period||P/L in pips||P/L in %|
|HLHB Trend-Catcher System||July 23-27||292||0.97|
|Happy Hunter Trading System (Fixed TP Variant)||July 23-27||–||-5.04|
|Happy Hunter Trading System (Trailing Variant)||July 23-27||–||-6.92|
|SMA Crossover Pullback System||July 19-24||300||2.00|
|Short-Term Bollinger Reversion Strategy 2.0||July 19-26||18.5||0.37|
|Inside Bar Momentum Strategy 2.0||July 18-25||44||–|
|Cowabunga System||July 23-27||77||–|
In case you missed it, check out how the Forex Mechanical Systems Showdown turned out last week!