When I took 100 trades with it, it lost few trades at the beginning. The strategy was tested on EURO JPY and on 30 minutes timeframe. Most strategies we have tested so far, win a couple of trades at the beginning including the MACD strategy, but this one lost trades even though the market structure was the same. You see, in the MACD strategy, you buy at the crossover of the MACD and the signal line. But in the TRIX indicator, there is no signal line. So for the TRIX indicator to give an entry signal, the TRIX value has to cross above or below the zero line. Because of this, even though the TRIX indicator properly identified the end of a pullback, the indicator gave late entry signals compared to the signals of the MACD indicator.
But even though the signals were late, they were still similar to the MACD signals. MACD’s profit graph looked something like this. A good relatively consistent uptrend. And after losing few trades at the start, the profit graph of the TRIX Trading Strategy also started to move more consistently in the upward direction similar to the profit graph of the MACD Trading Strategy.
And after 100 Trades, it got an approximate win rate of 47 percent with a 1.5 to 1 Reward Risk Ratio. This is the profit graph of the CMO indicator that we tested recently. The CMO indicator got a good win rate because it gave more and faster signals in a trend, and didn’t give a lot of the profit back in the range or slow market. The best part about the CMO strategy was its win rate, and with the TRIX Trading Strategy, the best part was the consistency of the profits.
5.5+7.5+6+5+7=31
Even though the CMO strategy was better when it comes to the win rate, if we visit the Trading Rush Website, we can see the TRIX indicator took the lead in the Quality of Trades, Reliability, and, Consistent Profits category, and gets a higher TR Score of 31 out of 50, and ranks 13th from the top, above the MACD with Ichimoku Cloud Strategy, and below the Chaikin Oscillator Trading Strategy.
The TRIX indicator is like the MACD indicator. Its strategy gives more consistent profits like the MACD strategy but is slow because it lacks the signal line. That’s all!