Exactly two weeks ago, on the pages of comparic.com, I presented the strategy of Awesome SMA. This strategy is based on two standard indicators, which can be found on each web platform or MT4. These indicators are:
Simple Moving Average – SMA100
Awesome Oscillator (default setting)
Over the past two weeks, I have published partial statistics showing the daily rates of return that could be derived from investing on this strategy. According to the announcement it is time to summarize and see if this strategy would make profit and whether it was worthwhile to invest basing on its signals.
As I conducted the tests on a 5 minute interval with a 25 minute expiration, the statistics only cover the 4 most popular currency pairs in hours. 8: 00-16: 00 (London session):
AUDUSD
EURUSD
GBPUSD
USDJPY
Investing in other instruments or at other times of the day should be carried out separately. This experiment was designed to verify whether this strategy has any basis for profitability and whether it is worthwhile devoting time to its detailed testing and trading based on the signals it generates. Based on previous tests, I have proven that not all strategies are profitable. The best way to date has been the EMA 8/20 strategy, which detailed summary is available here.
During the past two weeks (10 sessions), between the hours of 8:00 and 16:00, the Awesome SMA generated a total of 113 signals on the observed currency pairs. 69 of them turned profitable and 44 losers. This means that the efficiency was 61.06%. Taking into account the return on investment that UTrader trader is fluctuating between 76% and 81% in total, making 113 transactions we could earn 9.76:1.
During these two weeks, only two sessions were lost and as many as 8 profitable. The highest daily loss was 3.66: 1 and the biggest daily gain was 3.64: 1.
The highest amount (7,63: 1) could be earned on the EURUSD.The highest performance (73.91%) was generated by signals generated on the AUDUSD currency pair, where it was possible to earn 7.09:1. The GBPUSD and USDJPY have generated a loss in the past two weeks.
for consecutive 10 sessions. In the meantime, however, requests have been made that the strategy should also be tested on its original time interval, ie 1 minute with a 5 minute expiration. So next week I will continue to test Awesome SMA strategy, but already on the interval M1. If the result is positive, the test will be extended to two weeks. If, however, it turns out that at a lower interval this strategy will be very lossy, I will stop the test after a week.
