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.
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 kicked the week off by looking for short trades in a downtrend, catching 20 pips in gains on a manual exit. This was followed by an uptrend and a long position that scored 33 pips. Read more.
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 extended her winning streak thanks to one good trade from EUR/USD. She got another +80 pips, yo! 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 this past week, both Variants had a good run, thanks to the favorable trading conditions. As for specifics, the Trailing Variant is up by an impressive 5.11% for the month, while the Fixed TP Variant is up by 2.90%, which isn’t as impressive but still a respectable performance. 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.
The system’s long positions left from the other week all had to be closed early as their trailing stops were hit. Thank goodness these still yielded 78 pips in gains or a 0.52% win. 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.
Both pairs caught a few signals for the week but none of these turned out to be winners, netting a 111-pip loss or 2.22% dent on the account. Ouch! 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.
‘Twas the usual mix of greens and reds for this pure price action system but it managed to scrape by with a 43-pip gain for the past few days. Read more.
Forex Systems Summary
|Mechanical Trading System||Time Period||P/L in pips||P/L in %|
|HLHB Trend-Catcher System||Sept. 3-7||+80||+0.27|
|Happy Hunter Trading System (Fixed TP Variant)||Sept. 3-7||–||+2.90|
|Happy Hunter Trading System (Trailing Variant)||Sept. 3-7||–||+5.11|
|SMA Crossover Pullback System||Aug. 28 – Sept. 4||+78||+0.52|
|Short-Term Bollinger Reversion Strategy 2.0||Aug. 30 – Sept. 6||-111||-2.22|
|Inside Bar Momentum Strategy||Aug. 30 – Sept. 5||+43||–|
|Cowabunga System||Sept. 3-7||+53||–|
In case you missed it, check out how the Forex Mechanical Systems Showdown turned out last week!