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 marked another winning week for Huck, who registered another +85-pip (+0.28%) win for her trend-catcher. Not only that, but an open trade is also showing promise with a cool +179 pips already locked in! 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 flavors:
- 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.
And this past week, both Variants of the (very) Happy Hunter Trading System did pretty well since volatility finally picked up. The Trailing Variant, in particular, did splendidly well since it raked in an impressive 8.70% in gains this past week. The Fixed TP Variant, meanwhile, was able to harvest 1.92% in gains, which is still a solid performance. 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.
The system caught two signals each for these pairs, with the first ones hitting their full targets at the opposite bands. In the end, the system chalked up 55.5 pips in wins or a 1.11% gain on the account. 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.
The system had a rocky run with USD/JPY but was able to sustain Guppy’s winning streak on back-to-back gains, scoring 77 pips overall. Read more.
SMA Crossover Pullback
Robopip’s newbie-friendly SMA Crossover Pullback trading system 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.
There was still some tossing and turning for these pairs that I’m watching, resulting to multiple positions being closed on new crossovers and a 28-pip dent or a 0.17% loss for the week. 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 caught a nice mid-week win of 45 pips on a short play but gave up 19 pips later on. Fortunately his next trade hit the full target and made up for some of the losses, ending up with 49 pips for the week. Read more.
Forex Systems Summary
|Mechanical Trading System||Time Period||P/L in pips||P/L in %|
|HLHB Trend-Catcher System||Aug. 6-10||+85||+0.28|
|Happy Hunter Trading System (Fixed TP Variant)||Aug. 6-10||–||+1.92|
|Happy Hunter Trading System (Trailing Variant)||Aug. 6-10||–||+8.70|
|SMA Crossover Pullback System||Aug. 1-7||-28||-0.17|
|Short-Term Bollinger Reversion Strategy 2.0||Aug. 2-9||+55||+1.11|
|Inside Bar Momentum Strategy 2.0||Aug. 2-8||+77||–|
|Cowabunga System||Aug. 6-10||+49||–|
In case you missed it, check out how the Forex Mechanical Systems Showdown turned out last week!