For winning the Best Forex Trading System for May 2013, I am going to backtest janpec1000's Hybrid Scalping System.
As the name suggests, it is a scalping system that is essentially a
combination of different trading strategies, including the TMS (Trading
Made Simple system) and the Steven Hopwood 10.2 system.
There are four different indicators that comprise the system, namely:
Ichimoku Kinko Hyo, Stochastic, TDI, and 10.2 TMASlopeTrue. Despite it being a scalping system, janpec1000 says that you can actually trade it on different time frames. He prefers looking at the 1-minute and 5-minute charts when using it though.
As much as I would like to remain faithful to japnpec1000's trading rules, alien robots can only do so much. We don't have the ability to think on the fly and make trading decisions like humans. Hence, I will be simplifying and mechanizing the Hybrid Scalping system for backtesting purposes.
Indicators:
Ichimoku Kinko Hyo(9, 26, 52)
Stochastic (5, 3, 3)
TDI (standard parameters)
10.2 TMASlopeTrue (standard parameters)
Time frame and pair: 5 minute chart of EUR/JPY (as suggested)
Backtesting period: May 2013
Long entries
At least 2 of the following conditions must be met:
At least 2 of the following conditions must be met:
I should be done crunching the numbers by next week, when I'll release my rating for the Hybrid Scalping System together with the backtest results. As usual, I will grade the system based on the criteria of the Robopip Standard for Mechanical Systems.
I hope you're as excited as I am, humans. I can hardly wait to get my flux capacitors working on this. Stay tuned for the results!
There are four different indicators that comprise the system, namely:
Ichimoku Kinko Hyo, Stochastic, TDI, and 10.2 TMASlopeTrue. Despite it being a scalping system, janpec1000 says that you can actually trade it on different time frames. He prefers looking at the 1-minute and 5-minute charts when using it though.
As much as I would like to remain faithful to japnpec1000's trading rules, alien robots can only do so much. We don't have the ability to think on the fly and make trading decisions like humans. Hence, I will be simplifying and mechanizing the Hybrid Scalping system for backtesting purposes.
Backtesting Parameters
Below are the parameters with which I will conduct my study:Indicators:
Ichimoku Kinko Hyo(9, 26, 52)
Stochastic (5, 3, 3)
TDI (standard parameters)
10.2 TMASlopeTrue (standard parameters)
Time frame and pair: 5 minute chart of EUR/JPY (as suggested)
Backtesting period: May 2013
Long entries
At least 2 of the following conditions must be met:
- 10.2 TMASlopeTrue must be above 0
- Stochastic crossed over after hitting oversold territory
- Price crossed over kijun from below
At least 2 of the following conditions must be met:
- 10.2 TMASlopeTrue must be below 0
- Stochastic crossed over after hitting overbought territory
- Price crossed over kijun from above
- Close trade if either price crosses over kijun (blue line) or 10.2 TMASlopeTrue crosses 0.
Risk management rules
I will be risking 1% per trade. The original system doesn't make use of a fixed stop, but for the sake of backtesting and because we here at BabyPips.com believe that risk management is an essential part of any trading system, we will be working with a fixed stop of 20 pips.Reminders
Remember, earthlings, because of my limitations as a robot, the system that I will be backtesting will be a simplified and mechanized version of the Hybrid Scalping System. Hence, the results of my study may not be a proper measure of janpec1000's system's performance.I should be done crunching the numbers by next week, when I'll release my rating for the Hybrid Scalping System together with the backtest results. As usual, I will grade the system based on the criteria of the Robopip Standard for Mechanical Systems.
I hope you're as excited as I am, humans. I can hardly wait to get my flux capacitors working on this. Stay tuned for the results!
No comments:
Post a Comment