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 looked for long trades as the trend was up on Thursday, but he wound up with a 4-pip loss for the week. 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.
In this week’s update, Huck is regretting the loss of her winning streak over a 9-pip dent. Fortunately, a couple of promising signals could also turn things around for her trend-catcher. 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 rather rough time because of the terrible trading conditions. As for specifics, the Fixed TP Variant was down by 2.07% for the week, while the Trailing Variant suffered a slightly larger 2.85% loss. 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 opened a fresh batch of short positions on all three pairs and these are all still open, so no new wins or losses for now. 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.
Not the best of weeks for this mechanical trading strategy as it snagged another big loss of 100 pips or a 2% dent 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.
USD/JPY scored three consecutive wins on this strategy while Guppy had a hit and miss. All in all, it was able to rack up a total of 46 pips for the period. Read more.
Forex Systems Summary
|Mechanical Trading System||Time Period||P/L in pips||P/L in %|
|HLHB Trend-Catcher System||Sept. 10-14||-9||-0.03|
|Happy Hunter Trading System (Fixed TP Variant)||Sept. 10-14||–||-2.07|
|Happy Hunter Trading System (Trailing Variant)||Sept. 10-14||–||-2.85|
|SMA Crossover Pullback System||Sept. 4-11||0||0|
|Short-Term Bollinger Reversion Strategy 2.0||Sept. 6-13||-100||-2.00|
|Inside Bar Momentum Strategy||Sept. 5-12||+46||–|
|Cowabunga System||Sept. 10-14||-4||–|
In case you missed it, check out how the Forex Mechanical Systems Showdown turned out last week!