Only between 2016 - 2018 we have published over 400 forex strategies. We have also build and published over 200 MT4 expert advisors based on those strategies. Each of them was tested on at least 13 years of accurate historical data. To accomplish this and to find viable systems we had to go through about 1000 individual strategies and build about same number of trading robots. This is not some marketing pitch. All of those strategies and automated systems are still published here on this site. Almost daily we get asked the same question: what is the best forex strategy you have ever seen. With this post we will give you a definitive answer to the question what forex strategy do we consider to be the best in general and also what is the best forex strategy we have build and seen.
The simple question: what is the best forex strategy is actually quite complex. It can be compared to asking mechanic about what is wrong with your car over the phone. It can also mean many things for many different people. The answer will depend on what you are looking for, what is your level of expertise, what are you goals, your risk tolerance and your capital.
In other words the best forex strategy for experience multi millionaire trader might not be the best approach for near broke college student that has just started trading forex.
However we can give you very definite answer about what is the best system we have ever seen. It is also the system that can very suitable for both of those traders.
Our search for the best forex strategy Our website started as simple search for how to improve our own trading systems. Specifically we were interested in trend identification methods. We also wanted to look into various methods of averaging in forex. Once we build the system that was good enough, there was no reason for us to not publish it and offer it to the public. So that is what we did.
We have published around 400 forex strategies and over 200 MT4 Expert advisors.
When asked, we often tell the traders to not waste their time looking for the best forex strategy. Most of the traders would be much better off finding the strategy that is just good enough, master it and just focus on being consistent with it. But to be honest, we did not follow our own advice. We really wanted to build the strategy that could rise on top both on darwinex and myfxbook and that could be considered to be the best out there. We wanted the system that would have all the feature that would enable that. We wanted a little piece of internet fame.
Looking at other extremely successful traders
Do not look at what people say, look at what they do. We ignored marketers with their outrageous claims. We focused on best performing traders (verified by third parties). We looked closely at what they do and approach the choose to consistently make profit and beat their trading competitions.
We have also discarded the traders using extremely aggressive and potentially fatal methods that could profit for years but then blow the account in matter of hours (martingale, no stop averaging).
Obviously there were many ultra successful trader using all kinds of approaches. But the pattern we were able to identify with traders achieving the most steady results was clear.
They were all using multiple independent strategies simultaneously (typically automated), scattered across currency pairs. Resulting systems were composed of 3 - 20 independent forex strategies trading across multiple instruments simultaneously.
By nature this approach has many advantages. It is fundamentally conservative and enables high level of diversification. There is no single critical ´failure point. No single currency, no single rules set. We have observed, that those systems are the most robust and best performing. Unfortunately they are also hardest to build. The amount of work necessary to build original system is tremendous. The research might take years, together with millions of years backtesting of each underlying system. Lucky for us, we have already build and back tested hundreds forex strategies and we had the accurate data for over 200 expert advisors.
Picking the best individual strategies So the pattern was clear. The best performing traders are not using one holy grail system. Instead they opt to use many different strategies simultaneously. This needs to be done to perfection and 24/5. To to this day in day out, there is not other option other than using trading robot (expert advisor) for this purpose.
No human could ever trade this way and no human should trade this way manually. Also the fact of the matter is that about 90 percent of all trading volume in forex is currently handled by the robots. If you attempt to trade manually, you are putting yourself in disadvantageous position from the get go.
Upon finishing our research there was already over 200 various expert advisors published on page. The next logical (and hard) step would be to pick the and combine them into one supersystem.
We have reviewed all the strategies we have published in recent years and we have picked 8 strategies based on following criteria.
system is fundamentally conservative
opens only one trade at the time
each entry is protected by stop loss and ideally trailing stop loss
system follows the trend
entry is robust (not based on fragile edge that could change over time)
system rules must be based on fundamental market principle (trend, breakout, momentum, high low price)
system works for ultra wide variety of input combination (doesn't really matter what logical input combination you pick , system would still bring profit during last 15 years).
system must work on any currency pair and any time frame (above 1H).
profit factor a 1,4 or more
at least 200 trades per decade
Combining best individual forex strategies
Considering all those factors mentioned above, we have choose 8 individual forex strategies from our portfolio. Each of them is excellent system in its category (opening one trade at time, with stop loss). Each of them works great on its own. Each of them can be optimised for any pair and timeframe.
Following systems have been chosen to become part of Victory Trail EA:
4H Candle scalping
MACD and Envelopes breakout
MACD signal with growing momentum
Awesome MACD momentum
Envelopes breakout mastery
All of those strategies were optimized and combined into one system: Victory Trail EA. they were combined, so the could work together independently. Resulting system is able to achieve steady, aggressive results while reaming conservative in its core.
How does the best forex strategy we have build trade
Victory Trail EA consists of eight different forex strategies. They all work independently scanning the market for specific trend following signal - each one being pretty rare. Each of them will place advanced trailing stop immediately upon entry. Various calculation methods and rules are used for this purpose. As a result, two strategies can follow same market signal with ultra tight trailing stop based on parabolic SAR and wider TS based on local high/low looking to exploit the trend.
Using trailing stop ensures that only the market stops us from following the trend. As a result average risk reward ratio will be positive (average profit trade is larger than average loss trade).
In rare occasions, two strategies can trade in different directions. This happens when outlook of one strategy still sees trending market while the other strategies already identified reversal. This limits the overall exposure in unpredictable market conditions and helps to stabilize the system during major trend reversals.
Combining 8 separate strategies with all those features produces steady gain curve with low drawdown and solid recovery factor. Even during the unfavourable market conditions strategy is able to protect already gained capital.
Absolute transparency Victory Trail is one of the rare systems that claims excellence and yet its published with total transparency.
Nothing is hidden. Rules of each underlying system are published in full. No smokes and mirrors, no martingale hidden behind steady results.
No holy grail. Just good, solid and heavyweight system build from the scratch by the small group of passionate (obsessed) forex traders.
All strategies used in Victory Trail EA are using extremely robust entry and exit module. Each trade is entered only upon 1H candle close. Trailing stop is also only recalculated on candle close.
All calculations are using only universal market data (candle close/open/high/low). Backtesting is therefore independent of chaotic tick data that tend to vary wildly from broker to broker.
Backtesting result will there be the same regardless of the broker. Results will be the same both on high quality tick data and more crude control points. In other words, what happens inside the candle doesn't matter. Only hard and universal market data are considered (session close, open, high, low). Backtest therefore matches reality extremely closely. This fact is also confirmed by our forward testing.
The complex of 8 individual strategies - Victory Trail EA was tested and optimised for two currency pairs EURUSD and USDJPY. There is no reason for it to not work on any other instruments and users are free to optimize it and create their own unique input combinations for other pairs.
Backtesting was done for two pairs EURUSD and USDJPY (tested set files are part of the download).
Accurate tick model was used for testing of both pairs.
Due to the robust calculation model using only basic session data (open, close, high,low), backtest matches reality extremely closely.
Backtest was run on 15 years of data for each pair.
Two testing models were used, one with steady lot size (no proportional increase based on account balance). The second model used automated lot size increase based on account balance (0,01 lot per 290 USD of account balance).
Using the benefit of compound interest with autopilot settings, Victory Trail achieved tremendous and steady results on both pairs.
Live test result
We know that our backtesting results are matching reality extremely closely. Fundamentally , strategy follows basic market principle of trend and momentum, using proved and conservative position management.
Still the forward test represents the most important piece of the EA puzzle. Any strategy must be proven in real time data, in real market conditions to be considered viable.
In 06.17.2018 we have therefore launched the public forward test on new account. the account is verified by third party (myfxbook). VPS server is used for trading together with one of the best and most reliable ECN/STP brokers on the planet - DARWINEX. Account size is 10 000 USD and extremely conservative money management is used (0,01 lot per 1000 USD of equity).
As of october 8. strategy has gained 574 pips on both pairs. It has not experienced losing month yet and its performing according to expectations - flawlessly.
The most important thing we have confirmed is, that live results are matching our backtesting with extreme accuracy.
Forward test is published on our site and it is updated in real time. Come back any time to check the progress and real time results !
The best forex strategy we have build so far: Victory Trail EA With Victory Trail we have took the long and hard road through the mountains. first we went through hundreds of forex strategies build unique 200 expert advisor and tested them relentlessly and obsessively. We have put the most excellent 8 out of them together into hybrid supersystem. Victory Trail is definitely a heavyweight. It is complex and big.
It is the system that couples conservative strategies in the group and makes them work with singular goal. To produce steady aggressive gains with low drawdown.
When asked, there is not hesitation in our mind. Victory Trail is the best forex strategy we have produced.