Forex System Update: SMA Crossover Pullback (Oct. 19-23, 2015)

Greetings, dear humans! I’m back with another set of updates on the SMA Crossover Pullback forex mechanical system and I gotta tell ya, the numbers are lookin’ pretty fly!

As I’ve mentioned in my previous blog post, GBP/USD had a long position open until last week. Price was able to climb up to a high of 1.5500, putting the 150-pip trailing stop in play, eventually leading to an early exit just in time before a new crossover and selloff took place. Thanks to this risk management adjustment, the system still managed to lock in 35 pips with that position!

GBP/USD 1-hour Forex Chart

GBP/USD 1-hour Forex Chart

The euro pairs I’m watching with this forex system were able to get valid short signals just before the ECB rate statement and, as you’ve probably guessed, these positions are doing quite well.

EUR/USD 1-hour Forex Chart

EUR/USD 1-hour Forex Chart

EUR/USD actually hit its PT already while EUR/JPY is still makin’ it rain!

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

AUD/USD also got a valid short signal but the pair seems to be stuck in range so the short position was left open until the end of the week.

AUD/USD 1-hour Forex Chart

AUD/USD 1-hour Forex Chart

To sum up, here are the trades and open positions from the SMA Crossover Pullback system last week:

SMA Crossover Pullback Positions as of Oct 23, 2015
Pair Position Entry SL PT Status P/L  (pips) P/L  (%)
GBP/USD Long 1.5315 1.5165 1.5615 Closed +35 +0.23
EUR/USD Short 1.1350 1.1500 1.1050 Closed +300 +2.00
EUR/JPY Short 135.45 136.95 132.45 Open
AUD/USD Short .7290 .7440 .6990 Open

Following the 371-pip or 2.47% gain since the start of this quarter, this system was able to chalk up an additional 335-pip lead or +2.23% gain. I don’t want to jinx it but it looks like the current week is also shaping up to be another profitable one. I’ll run the numbers in my next blog post so stay tuned!

  • Stuart McPherson

    Love the progress your having with this strategy. Implemented it myself and so far its going great!

    • Thanks for the positive feedback and for checking out my blog updates!

  • vicky vicky

    what are the SMA ?

    • I’m looking at the 100 and 200 SMA for this particular system.

  • James

    Just a couple of questions:

    1) how long you been using this system ?
    2) does it only work on certain pairs ?
    3) What broker do you use ?
    4) how much do you trade per pip ?
    5) how long do you hold each trade for(day, week hour) ?
    6) why the 100 and 200 SMA, when others use 5, 10, 50, 21 etc etc ?
    7) what time frames do you use ?

    • Hi James! Here are my answers:

      1) I’ve been running tests since the middle of this year
      2) So far it seems to be working on these pairs I’m watching, haven’t really checked other pairs yet. I chose these ones because of their liquidity and trends in the first half of the year
      3) Broker? FX5819248ZZYY… Only available in my home planet 😉
      4) I risk 1% of the account on each valid setup (150 pips)
      5) I don’t really have a set time stop for each trade, just keeping the positions open until any of the exit signals are triggered
      6) I prefer the smoother moving averages because they give fewer signals and are less prone to fakeouts
      7) I’m watching the 1-hour charts

      Thanks for checking out my blog!

  • Awesome! So it also works fine on other markets? My only concern is that it doesn’t seem to do well during ranging market conditions so it might be an option to pause this system during the summer months.

  • James

    How are you finding the signals/crossovers, are you using some automated system/ or MT4, or do you stare at the screens all time, since I’m not seeing as clearly defined signals as the ones above ?