Forex System Update: SMA Crossover Pullback (Aug. 3-7, 2015)

Greetings, my dear humans! The SMA Crossover Pullback mechanical system seems to have fared a little better last week compared to the earlier ones. If this is the first time you’re reading about this strategy, make sure you check out its forex trading rules right here.

The previous long forex positions on EUR/USD and EUR/JPY had to be closed early when new crossovers were seen. Soon after, the stochastic indicator gave signals to take short positions.

EUR/USD 1-hour Forex Chart

EUR/USD 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

GBP/USD also showed a new crossover but so far, no pullback signals have been made.

GBP/USD 1-hour Forex Chart

GBP/USD 1-hour Forex Chart

Last but certainly not least is AUD/USD, which finally gave a valid buy signal after weeks of being crossover-free.

AUD/USD 1-hour Forex Chart

AUD/USD 1-hour Forex Chart

Here are the latest positions:

SMA Crossover Pullback Positions as of Aug. 3, 2015
Pair Position Entry SL PT Status P/L  (pips) P/L  (%)
EUR/JPY Long 135.80 134.30 138.80 Closed +5  +0.03%
EUR/USD Long 1.1040 1.0890 1.1340 Closed -68  -0.45%
EUR/JPY Short 136.00 137.50 133.00 Open
EUR/USD Short 1.0970 1.1120 1.0670 Open
AUD/USD Long 0.7350 0.7200 0.7650 Open  –

For the previous week, the SMA Crossover Pullback system saw a 63-pip loss or a 0.42% dent on the account. That’s less than half of the average losses over the earlier weeks so I’m still feeling hopeful that the results are about to get better. What do you guys think?

  • Sure, that simply takes fewer bars into consideration so if you’re looking at the daily time frame you’d be using the moving averages for the past 10 and 20 days. This could provide more crossovers since they’re more sensitive to recent data but could be prone to fake signals as well. It depends on how you filter out those signals for a better system. Hope this helps!

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