Back to the Forex

Back to the Forex

Apr. 3, 2024

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Today we’re going back to the good old days.

(A few months ago).

In this Newsletter, we’re going back to the Forex!

In 2023, I worked hard on tweaking a Bollinger Band™ system for the Trading Conference in Australia.

And, as it turns out, Bollinger Bands are pretty awesome.

(See “A Nice Little Bollinger Band™ Portfolio” here.)

Considering how disappointed I’ve been with Fx brokers in America, I’ve been focusing more attention on stocks and Futures because the testing works like real life.

But the greatness of Bollinger Bands™ might the thing to overcome horrific broker execution.

Here’s the system:

30-Minute GBPJPY-Only Band Breakout (Master Trend Robot)

  • Entry: When price closes above the Upper Band (100 length, 2.4 std dev), go Long. When price closes below the Lower Band (100 length, 2.4 std dev), go Short.
  • Target: 310 pips
  • Stop: 90 pips

Hmm, that’s a very simple system. Does it work?

Yes.

Times three.

Specifically, I wanted to check this system since 2023. In my trading, that’s when Fx trading executions started becoming suspect and trends started to change their behaviors.

Since 2023, trading 1 lot each time on a 30M chart (via Portfolio Architect):

Two interesting things. One, it’s slightly profitable. Two, going Long only on this system is better.

But that’s not the really interesting part.

I also ran the same system with the same settings on the 15m and 1H charts.

And here’s what a portfolio trading all 3 would look like since January 2023:

Here are the Annual Returns:

Both of those look good, assuming your broker executed properly. And look at the Long trades.

The Longs are way better than the Shorts. In the past two years, you could’ve traded this as a Long-Only portfolio and done very well.

Last, here’s the Equity Curve for this system since 2018 going both Long and Short:

On a hypothetical $25k account, the portfolio of all three timeframes hypothetically has performed nicely with profits over $110k.

In our next Newsletter, we’ll look at a wacky automated system that I don’t quite believe.

 

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Disclaimer:
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.