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 one winning trade canceled out losses from two losing signals to extended the HLHB System’s winning streak for another week. A +23-pip (+0.08%) win is still a win, right? 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. 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 after a disappointing performance last week, both Variants of the (very) Happy Hunter Trading System delivered a rather impressive performance this past week, with the Trailing Variant harvesting a very impressive 10.52% worth of gains and the Fixed TP Variant up by 3.08% for the week. 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.
But even with some sideways action for both pairs in the past few days, the strategy was unable to catch any valid signals since the oscillator didn’t indicate overdone conditions. 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 strategy caught fewer than usual signals, despite a number of momentum-driven moves on both pairs, and wound up with a teensy 7-pip loss for the week. 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.
No wins or losses for the strategy for now, but it did catch new long positions on all three pairs. So far it looks like the trends are gaining traction, but I hope I didn’t jinx it! 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 an easy win but gave up some gains on a small loss later on, netting just 2 pips for the week. It’s all in his Surf Reports! Read more.
Forex Systems Summary
|Mechanical Trading System||Time Period||P/L in pips||P/L in %|
|HLHB Trend-Catcher System||Aug. 27-31||+23||+0.08|
|Happy Hunter Trading System (Fixed TP Variant)||Aug. 27-31||–||+3.08|
|Happy Hunter Trading System (Trailing Variant)||Aug. 27-31||–||+ 10.52|
|SMA Crossover Pullback System||Aug. 21-28||0||0|
|Short-Term Bollinger Reversion Strategy 2.0||Aug. 23-30||0||0|
|Inside Bar Momentum Strategy 2.0||Aug. 22-29||-7||–|
|Cowabunga System||Aug. 27-31||+2||–|
In case you missed it, check out how the Forex Mechanical Systems Showdown turned out last week!