Gather ’round, fellas! Let’s take a closer look at how the Amazing Crossover System (Version 3.0) fared in my forex mechanical system framework.
Before reading on though, make sure you check out the following blog posts first:
And now here are the grades!
Compared to the second version of this forex mechanical system, this particular one was able to generate higher gains for the yearly backtests. Although this third version churned out more losing trades and had a worse win ratio compared to the previous ones, it was able to reduce breakeven trades and convert most of those into wins! The forward test results were so-so though, as the system simply generated a little less than 1% in gains for three weeks.
Risk Tolerance: 19/20
I’ve observed that the adjustment from a 20-pip to 50-pip trailing stop did a better job of keeping trades open for much longer when trends are strong instead of getting positions stopped out on small retracements. The early exit rules from the parabolic SAR and new valid crossovers were still able to lock in gains along the way and pretty much served as additional measures for reducing exposure when price action started to reverse.
As with the Amazing Crossover System (Version 2.0), these rules might be a tad more complicated for a newbie forex trader to implement as the exit signals could get confusing. It’s not that easy to watch the 50-pip trailing stop, parabolic SAR, and new valid crossovers all at the same time!
Total Score: 46/50
All in all, the forex system scored a total of 46/50 as I think that it is slightly better compared to the second version I made. It might be worth looking into and programming in an EA for longer-term traders out there!
As some of my forex followers suggested in an earlier blog post, I’ll run a more comprehensive side-by-side comparison of the three versions of the Amazing Crossover System to give y’all a better idea of how they stack up against each other. Which among the three do you think came out on top?