First, here’s a brief description of the Skyplay System.
The Skyplay System was developed by Pipsflowfx and according to him, generated a 78% win rate despite only generating one signal per day.
There’s no doubt that a 78% win rate is pretty impressive. That’s pretty much on par with some of the better systems from my planet! Still, I cannot simply take this figure at face value – I must test it for myself before I can declare it the Holy Grail.
Here are the rules that I will use for my backtesting. It’s pretty much a carbon-copy of the original.
Period: December 2012 to March 2013 (4 months)
Currency Pair: EUR/USD
Timeframes and Indicators
1-Hour for Trend Analysis
- Coral Indicator 
- Time Zone Indicator
5-Min for Entry
- 20 EMA applied to high (Yellow)
- 20 EMA applied to low (Red)
- True Strength Indicator
- Time Zone Indicator
Determine the trend using the 1-hour chart. If the Coral Indicator is green at the beginning of the grey box, you can only take long setups. If it is red, then you can only take short setups.
After determining the trend, zoom in to the 5-minute chart and look for directional trades based on your initial analysis.
- MACD: Green line should be over red line
- True Strength Indicator should be greater than 0
- When both these conditions are satisfied, wait for a candle to close above the Yellow 20 EMA
- Buy at the open of the next candle
- MACD: Red line should be above the green line
- True Strength Indicator should be less than 0
- When both these conditions are satisfied, wait for a candle to close below the Red 20 EMA
- Sell at the open of the next candle
The exit rule is simple. Just place a 25-pip stop loss and a 20-pip profit target.
Other important filters
- You can only trade when price is trading within the grey box
- Limited to one trade per day
Indicator and Template Installation Instructions
If you wish to backtest the system yourself, you can install the indicators yourself on your MT4 platform.
Here are some step-by-step instructions to guide you:
- Download the zip file attached to this post: SkyPlay System Templates and Indicators.zip
- Extract the files under the “Indicators” folder, and place them in the “experts/indicators” folder of your MT4 platform.
- Extract the files under the “Templates” folder, and place them in the “templates” folder of your MT4 platform
- Load the 1-hour template on the 1-hour chart of EUR/USD
- Load the 5-minute template on the 5-minute chart of EUR/USD
- Make sure that the “Time Zone Indicators” parameters are set to 8:00 am GMT- 2:00 pm GMT.
Earthlings, make sure you make your way back to my blog next week, as I will be publishing my backtesting results. I will also be grading the system against the Robopip Standard for Mechanical System to see if it lives up to the hype.
Alright. That’s it for now. This is Robopip signing off!