Greetings, earthlings! Here are my grades for the Amazing Crossover System based on my framework for mechanical system. Long story short, the results were amazing indeed!
Before reading on though, make sure you review the following blog entries:
Amazing Crossover System Rules
Back Test Results: Amazing Crossover System
July Forward Test Results: Amazing Crossover System
And now here are the grades:
Profitability: 20/20
Rarely do I give perfect scores for profitability, but this system definitely takes the cake! For the forward tests conducted over the first three weeks of July, the Amazing Crossover System yielded 246 pips or 2.46% in gains. For the backtesting period of March to June 2014, the system churned out an impressive 961 pips or 9.61% in gains.
Apart from that, the system had a pretty high win ratio and very few losses. In fact, over the backtesting period, the initial stop was triggered only twice! As I mentioned in my previous entries, the trailing stop does a pretty good job of protecting profits and locking in gains as price moves in the trade’s favor.
Risk Tolerance: 19/20
The Amazing Crossover System also has a solid risk management strategy in place, as the 20-pip trailing stop locks in gains along the way and allows for an early exit during volatile market situations. The RSI also does a good job of filtering out trade signals during times of consolidation.
The initial 100-pip stop rarely gets hit, although I can’t help but wonder if the results would be the same if the original stop is set at 50 pips to make for a potential 2:1 return with the same 100-pip profit target. Anybody care to backtest or forward test?
Newbie-Friendliness: 10/10
The system rules are fairly easy to understand and implement. Newbies with a good understanding of basic technical indicators can make use of this simple yet profitable system.
Total Score: 49/50
All in all, this is probably the highest grade any mechanical system has ever gotten in my framework. Not only does it generate decent profits, but it also has an effective risk management plan and is easy for newbies to understand… Amazing indeed!
If you’re interested to see more backtesting results, you might wanna take a look at my forex mechanical system review for the Amazing Crossover System nearly three years ago.
It looks like some of my readers have also gotten positive results from this system. Could this be the Holy Grail system that we’ve been looking for? Don’t be shy to share your thoughts on this trading system in the comment box below!