Hey now. I'm back with another trading system review.
In this installment I will be testing this trading system from the FXAccurate
channel that claims to have a 98% winning rate,
and we will find out how the most accurate buy sell indicator performs over
100 consecutive trades.
Just be sure to watch until the end where I give my five optimization tips.
And if this content is for you just crush that subscribe button better than this
ladies landing.
I call this system The Non Sequitur. And like most trading systems,
it can be applied to Forex, options, stocks, cryptos, indices,
or any instrument that has significant volume and market participants.
This strategy uses three free TradingView indicators.
As always links and settings to all indicators are listed in the description.
The first indicator is the Dzwine Trend Indicator A-V2 per
the system author. The EMA length will be set to 52,
and the smoothing EMA length to 10.
This study takes two interpretations of a moving average. And in this system,
it will be used for entry confirmation.
The second free TradingView indicator is our old and dear friend the SuperTrend.
This system requires the ATR period to be set to nine and the ATR multiplier
configured to 3.9. The SuperTrend will provide our signals for entry.
The third and final study to put on the chart is the popular Qualitative
Quantitative Estimation or QQE Mod.
This indicator incorporates data from the RSI and the ATR
in an attempt to identify trending and consolidating conditions.
This indicator will provide us with entry confirmations.
Let's go over entry criteria and review some examples as always system rules and
details are listed in the description below.
This chart is Aussie versus the US dollar one-hour candles.
The rules to enter a long on the non-sequitur are: first.
The QQE Mod must show a blue bar. Second,
the Trend Indicator must be green. Finally,
we are looking for a SuperTrend to buy signal.
All the rules are met on this candle. This is our trigger.
We place our stop below the Dzwine Trend Indicator and target one
to two. And this one hits our target. If you enjoy this content,
make sure to click that like button. I have one more long example.
The QQE mod is blue. The Trend Indicator is green,
and finally the SuperTrend gives a buy signal.
Everything converges on this candle. This is our trigger candle.
The stop is placed below the Trend Indicator ribbon,
and one to two is our target. And this one hits one to two.
Now we flip to shorts. This is what I will test for shorts. First,
the QQE Mod must provide a red bar. Second,
the Dzwine indicator must be red. Finally,
the SuperTrend study must show a sell signal.
Our three rules are met when this candle closes and serves as our trigger.
We place our stop above the Trend Indicator and target one to two.
And this one hits our target.
I'm going to show you one more quick short example. First,
the QQE MOD histogram is red. Second,
the Dzwine trend indicator is red. Finally,
there is a SuperTrend sell signal.
All their criteria is met on this trigger candle.
The stop is placed above the trend indicator ribbon,
and the target is one to two. And this setup hits our target.
I'm going to give you some great ideas on how we can make this system better
along with a Traders Landing score. And now it's time to do what I do.
If you enjoy this content, please hit the like button. Remember,
this is just 100 tests on one instrument.
If you are thinking of using this system,
please do all the required testing and be sure to let our community know what
you discover.
This test was done on Aussie versus the U S dollar one-hour candles.
It took two months short of two years to find the 100 setups and most wins in a
row were six. Most consecutive losses turned out to be eight.
The winning percentage was 43%,
which is not bad for a one to two risk to reward.
If all the trades were taken risking 2% per entry,
the gross gain on account was a healthy 52%,
but I have five specific ideas on how to make this system better.
You can see the equity curve here. It gets you into the green fast,
and then consolidated for about half the test.
This could be mitigated by moving the stop to break even at one-to-one.
In that case, set ups like this one would have been profitable, thus blunting,
the downward force of the account balance.
What score would you give this strategy? Let me know in the comments below.
I give this system a Trader's Landing score of six,
because while the system was profitable over the 100 tests,
the indicators do not seem to follow each other. Hence the name Non Sequitur,
and I will get into that now. Remember the enemy of great is good.
I have five ideas on how we can improve this system. Look at this chart.
Many times during the test,
I noticed the stop being hit only to move in the direction of the trade
immediately after. You can see here by optimizing the stops,
these trades could have been either profitable or exited at break even. Second,
the signals the system gives off like most systems and consolidation turn out to
be losers. Look at this chart where there are three consecutive losses.
The first thing I thought of to filter this out was to incorporate the Triple
SuperTrend strategy like I used in this video with fantastic results.
Furthermore,
this particular combination of indicators has trouble getting you into large
moves to often. Look at this chart where the QQ Mod filters out this huge move.
This happened too often and indicates either the indicator settings need to be
tweaked or another indicator altogether should be used.
Following up to the previous point of changing the indicators.
The HalfTrend indicator seems to work well in this setup where the QQE misses
this entry. Four,
on this setup where the Dzwine Trend Indicator misses this move.
This system just barely misses many large moves.
That is why it must be optimized. In addition,
I noticed during the test that the gain on account,
most likely would have been significantly increased by using a dynamic take
profit system. On this chart,
you can see exiting on the buy signal of this short would have yielded a risk to
reward of 3.22. And on this chart,
you could have walked away with a fantastic four and a half.
Check out this playlist to see more profitable systems. And have a great day,
because you deserve it.