As promised, I did a forward test for the “Trend is Your Friend” forex mechanical system by forum member donnapinciotti and here are the results:
NO TRADES AT ALL!
Well, that’s based on the 4-hour chart of EUR/USD. As the system owner recommends, the rules are better applied on the 1-hour forex time frame. Based on the feedback I got from the yearly backtest results, I do agree that more signals might be better too. Let’s take a look at the trades generated for this month:
The first few signals (based on MA close and RSI) were invalid because of the lack of reversal candles. During the third week of the month though, a valid short signal popped up with an entry at 1.3683. A few days later, price eventually made its way down to the 1.3580 area to hit the 100-pip PT and generate a 2% return on the trade.
That’s about it for the entire month though, but I guess one signal ain’t so bad if it’s a winning one! I’ll save the rest of my comments for my next entry though, as I plan to release the grades based on my Framework for Mechanical Systems. Stay tuned!
*beep beep boop beep*