Salutations, earthlings! It’s that time of the month again! As February comes to a close, let’s take a couple of minutes off to vote for the month’s Best Forex Trading System. This time, we’ve got not one, not two, but three awesome systems in the running. Who will come out on top?
Experimental Breakout/Ranging Double Strategy
pipcompounder, the winner of January’s contest, decided to share another system with us. Even though the system isn’t complete yet, he thinks that it’s viable because of it seemed to perform well in his visual backtesting.
The theoretical system, called the Experimental Breakout/Ranging Double Strategy, only uses one indicator: the envelope trading bands.
The entry rules are simple. For breakout plays, all you have to do is buy when price breaks the upper band and sell when it breaks the lower band. For range plays, you sell when price touches the upper band and buy when it tests the lower band. You could say that it’s very similar to a simple Bollinger Bands-based strategy.
If you want to know more about the strategy, you can head on over to pipcompounder’s discussion thread at the forums.
Channel Trading: 500 Step System
Our next nomination came from newbie forum member Frawan. Take note, however, that his own system it is not. He came across the Channel Trading: 500 Step System made by another forum member, Viking1961, and thought that it was a worthy contender to the contest.
Basically, you have to find a channel for whatever currency pair you’re trading by determining its “min-max” boundaries and its safe zone. It doesn’t make use of any indicator, just pure price action.
Frawan talks more about the 500 Step System in his thread. Read on to find out more about his exit levels and backtest results.
Experimental Channel Breakout System
Cyco, a senior forum member, decided to come up with a system that uses the strategies outlined the books “Way of the Turtle” and “How to Make a Living Trading Foreign Exchange.”
As the name suggests, the system is similar to that which Frawan nominated in that it also uses a channel. It doesn’t just focus on price action though, as the Experimental Channel Breakout system also utilizes the 55 and 20 price channels, ADX (14), and ATR (20).
For the most part, he trades the system on the daily time frame but he says that it may also work on other longer time frames such as the 4-hour or higher. Cyco has outlined all the entry and exit rules for his system in the Experimental Channel Breakout System thread. Check it out!
There ya have it, humans! Of the three contenders for February’s Best Forex Trading System, which one are you willing to get abducted by aliens for?