Meta-Trader – Teyacanani Review

Welcome back Meta-Traders.

This is the 4th in our series of reviews of the systems found on Asirikuy. In this review, we tackle Watukushay #4, also known as Teyacanani.

Teyacanani is a word in Nahuatl - the language of the Aztecs in Mexico - which means “leader.” The name comes from the fact that the author considers this to be the best of all the systems on Asirikuy. And based on the back test and live test results, he appears to be correct!

The development of this system traces back to Watukushay #2. Recall that Watukushay #2 is based on a 3 bar candlestick pattern called “Three white soldiers” or “Three black crows” its bearish equivalent. The author was looking for something simpler that would trigger more quickly than the 3 bar pattern as sometimes a significant price move has already developed by the completion of the 3 bar pattern. What he came up with is the height of simplicity and is based on a 1-bar price pattern.

Unlike my other review of systems on Asirikuy, I cannot reveal the specific details of the logic. The author considers them to be proprietary but they are covered in a video which you get as part of your membership to Asirikuy. You also get the source code for the system which you can use to unravel the logic.

What about performance?

In a 10-year back test, the system turned 100K into $226,600. That comes to a 7.72% annual return which is less than spectacular. But wait, that’s only with 1% risk. Up the risk factor to 3 and 100K turns into over $1,017,179! Now that’s more like it and done with only a maximum of 17% drawdown!

A look at the back-test for 10 years on EUR/USD shows 10 straight winning years with an average drawdown of -3.70% with an average annual gain of over 10%. That means the system returns about $3 for every $1 in drawdown. This compares favorably to Watukushay #2 and God’s Gift ATR which both return about $2 for each $1 in drawdown.

Daniel also runs Teycanani on other currency pairs USD/CHF, GBP/USD, AUD/USD and NZD/USD. Backtesting shows that the system did not perform nearly as well on those pairs as they did on EUR/USD.

In terms of live results, Teycanani is performing very well (in the 25-31% range) year to date on the EUR/USD. Live results from the other pairs are all negative except for USD/CHF which is slightly in the positive.

I have uploaded a 10-year back test results (minus the parameters section) to my Yahoo group at http://finance.groups.yahoo.com/group/fx-mon/.

I will be running Teyacanani against EUR/USD in at least 2 portfolio accounts live starting in 2011.

Check back later for an updated on work on my own EA called Fx-Regression.