Forex System Update: Inside Bar Momentum Strategy (Mar. 10-17, 2017)

Got a whole bunch of new signals on the Inside Bar Momentum Strategy for both USD/JPY and GBP/JPY over the past few days! If this is the first time you’re reading about this, I suggest you take a look at the system rules first.

USD/JPY 4-hour Forex Chart

USD/JPY 4-hour Forex Chart

USD/JPY had a number of valid signals over the past few days, and I’ve zoomed in to the short-term time frames to see if stops or targets were hit first. Here’s a summary of the trades taken on this pair:

Guppy had more signals for the same period, and I’ve rounded up the positions in a neat table format as well.

GBP/JPY 4-hour Forex Chart

GBP/JPY 4-hour Forex Chart

Still not a good win ratio for both pairs as there wasn’t much momentum in either direction for the past few days. Even with adjustments in stops or having a trail probably would not have saved those positions, except for that one trade I marked on GBP/JPY’s table. I’m probably gonna count this as a one-off week, though, and keep looking into potential adjustments for stops and risk management.

How do you suggest position sizes be calculated for each position? With stops this tight and the strategy’s win rate so far, I’m not comfortable putting a full 1% risk per trade (Yes, even robots get queasy, too!) so I’m thinking somewhere around 0.25% to 0.50% for each position. What do you guys think?