With the year 2012 coming to an end, I thought I’d round up the highest scoring trading systems that I have reviewed. Before I go on, let me just say that this list is by no means exhaustive. And I’m not saying that these systems are the best in the world either. These systems are simply the ones that scored highest in my reviews. Now, without further ado, here are the 3 highest scoring trading systems for the year:
This system created by pipcompounder is a rather simple one. It uses the 1-hour time frame, with a specific focus on the opening candle of the London session.
The basic idea is to place two orders a few minutes before the London session opens:
- A buy stop 3 pips above the candle’s high, with take profit point of 4 pips above entry, and with a stop loss set at the candle’s low or at 30 pips, whichever is less.
- A sell stop at the low of the candle with a take profit target of 7 pips, and a stop loss of 3 pips above the candle’s high.
- Once one of these orders is triggered, cancel the other order.
Pipcompounder suggests that you leave the orders open until it hits either the stop loss or take profit points, but don’t leave trades open over the weekend. Check out the Statistical Breakout discussion thread in our forum for more information.
The Red Light Green Light system is one of the strongest contenders in February’s contest. The philosophy behind it is that you can use indicators to determine when trends will reverse and when price is about to breakout. It makes use of the following indicators: the Average Directional Index (ADX), the Average True Range (ATR), and the Exponential Moving Average (EMA).
According to the system creator, you can use it on any time frame, but it works best with the 15-minute chart. If you want to know more about the system, then just head on over to the system’s discussion thread in the BabyPips.com forum.
Seagull System II by gerrylint (42/50)
The Seagull System II is perhaps one of the most complicated among the three as it uses a custom indicator. The creator, gerrylint, worked on the system for more than 4 months but he still says that it is a work-in-progress. Despite this, the system was one of the two systems that scored the highest in 2012.
The system uses three indicators: the Super Trend Signal (STS), EMA, and RSI. The creator emphasizes though, that you need to look at two EUR/JPY 4-hour charts simultaneously. That way, there are more opportunities for you to jump in on the signals and open multiple positions.
Just like the other two, if you’re interested in knowing more about the system, just visit the Seagull System II forum thread.
There you have it folks. Before you head on out and celebrate the holidays, please give these systems one last round of applause! Congratulations! See you next year, human race!