Welcome to my forex blog. Here you can find free forex signals for ten currency pairs as produced by several of my mechanical systems. For more information on my systems and backtesting results please read my first post. For performance so far please see the bottom of this page. I'm currently testing these systems on demo account. I don't recommend anyone to take trades posted here on a live account. Signals posted here are for informational purposes only.

Saturday, August 18, 2007

Backtesting Results

I'm going to post free trading signals for ten currency pairs. Each currency pair has it's own system/strategy. For past two years I've been working on trying to find strategies/systems that work consistently every year. Trades are long term trades.

10 year backtesting results:

GBPAUD*
12000 pips
DD:-1000pips
Trade size: 582 units**/$1000 account balance

GBPCHF
22000
DD:-2000
Trade size: 297 units**/$1000 account balance

USDJPY
16000
DD:-1000
Trade size: 593 units**/$1000 account balance

GBPJPY
32000
DD:-2500
Trade size: 237 units**/$1000 account balance

AUDJPY
18000
DD:-1350
Trade size: 440 units**/$1000 account balance

GBPUSD
9000
DD:-500
Trade size: 1000 units**/$1000 account balance

USDCAD
7000
DD:-1000
Trade size: 527 units**/$1000 account balance

EURJPY*
3000
DD:-500
Trade size: 1188 units**/$1000 account balance

EURAUD*
4000
DD:-500
Trade size: 1164 units**/$1000 account balance

CADJPY*
4400
DD:-800
Trade size: 742 units**/$1000 account balance

Some currency pairs have big DD, so it is important to follow suggested trade sizes.

* 5 year backtesting
** 10000 units = 1 minilot

DD means maximum drawdown

Trade sizes are chosen so that each pair has max drawdown of $50 per $1000 account balance or 5%. This way all pairs are made equal and portfolio is properly balanced and well diversified . I use following compouding rule: I don't use new account balance to calculate new trading sizes until there is 30% increase from initial account balance or since previous increase. Using this system I'm expecting 80%-100% returns per year.

I started forward testing this system on a demo account 3-4 weeks ago and it is still under testing. I don't recommend anyone to take trades posted here on a live account. Signals posted here are for informational purposes only.

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