I’m back with another forex mechanical system to test this month. This time, I’m looking at the MACD(addy) Divergence System by jenesaisquoi, another past winner in my Best Forex Trading System Contest.
According to jenesaisquoi, the rules are really simple as the system makes use of the MACD (12, 26, 9) and the stochastic (14, 3, 3) indicators. The entry signals are straightforward, although you might need to brush up on the Trading Divergences lesson when using this one!
Stochastic is used for confirmation and can also be used for exits, but the system owner also mentions that you can tweak the stop loss and take profit levels based on your trading style. Based on the forex mechanical system’s forum thread, it appears that some members have already tried this one out and got pretty decent wins.
With that, I’m looking forward to see what kind of results my backtesting and forward testing will churn out. Time to retreat to my pod to crunch the numbers… Stay tuned!