Happy New Year, earthlings! Or as we’d like to call it in my home planet, welcome to the year 74830-1940XAB-VII! Before reviewing the first few trades for the year, let’s have a look back at how each of the currency pairs fared under the SMA Crossover Pullback forex mechanical system, as one of my dear readers suggested.
2016 P/L in pips: +1,188
2016 P/L in %: +7.26
Average gain per winning trade: 0.93%
Win rate: 54.54%
Largest drawdown: -1.32%
2016 P/L in pips: +1,915
2016 P/L in %: +12.77
Average gain per winning trade in %: 1.17%
Win rate: 66.67%
Largest drawdown: -2%
2016 P/L in pips: +1,133
2016 P/L in %: +7.55
Average gain per winning trade: 1.15%
Win rate: 61.53%
Largest drawdown: -2.27%
2016 P/L in pips: +256
2016 P/L in %: +1.51
Average gain per winning trade: 0.70%
Win rate: 45.16%
Largest drawdown: -2.10%
Among the currency pairs I’ve traded for the SMA Crossover Pullback System, Cable pretty much crushed the competition with the highest overall gains, the largest average gain per winning trade, and the best win rate.
EUR/JPY came in second with 7.55% in gains and a decent win rate of 61.53% with roughly the same number of positions as GBP/USD. Behind the pack is AUD/USD with more than 30 positions throughout the year but yielding only 1.51% in total profits with over 2% in its max drawdown.
While it could be tempting to just stick to trading the best-performing pair among the bunch, I remembered that GBP/USD may have just had an extraordinary year due to all the Brexit-related trend catalysts that were in play. Cable also happened to chalk up the most amount of full 2% wins, partly due to the pair’s inherent volatility as well.
Moving forward, I’m thinking of ditching AUD/USD in terms of playing this system since I noticed it usually falls victim to choppy market conditions. Besides, this particular pair might require some adjustments in terms of stops and targets because it has a smaller average pip movement compared to the rest. What do you guys think?
Got any other conclusions you can draw from these numbers? Looking forward to getting your feedback on this mech system! Here are some books if you want to get deeper into building systems & algorithms. BabyPips.com receives a small credit from any purchases through the Amazon links above to help support the free content and features of our site…enjoy!