I’ve been doing some kind of recap over the last week (but only for EU) just to summarise how it would have turned out if traded according to 5/10 crossovers and RSI. (I don’t really like the ADX indicator, I’ve never used it and I don’t find much benefit from it here, either - so I’ve ignored its input here).
There are two reasons for doing this:
Last week was quite a narrow range and it is interesting to see how this trend-based method survived in a trendless week.
My own recognition of signals seems to differ sometimes from the system owner and I would really like to try and find out why!! I will compare my own signals for last week with those from HLHB when they are published on her blog (especially trades 3 and 4 are questionable).
I had a total of 5 signals, the first of which was opened the prior week on Fri 13.7. and was closed last Tuesday and the 5th trade was opened on Fri 20.7. and is still open.
Even though the week was trendless the end result was positive with +33 pips from closed positions and +65 on the open position number 5. But the table also shows how inefficient this kind of crossover method is when the moves are fairly small - the end two columns show the max number of pips each move achieved, which can be compared with the actual pips that the crossovers achieved.
No great surprises here.
This is a theoretical analysis only and ignores spreads, slippage, commissions, etc. Since we all seem to be trading this method with different variations, I just thought it might be useful to analyse it this way i.e. close to the original (with the exception of the ADX)