Forex System Update: SMA Crossover Pullback (Dec. 7-11, 2015)

Greetings, forex earthlings! I’m still getting a few good signals from the SMA Crossover Pullback system even if trends appear to be slowing down. If this is the first time you’re hearing about this mechanical system, better take a look at the trading rules and risk management adjustments first.

GBP/USD showed a fresh crossover last week but the stochastic pullback took a while to materialize, generating a long forex signal mid-week.

GBP/USD 1-hour Forex Chart

GBP/USD 1-hour Chart

AUD/USD’s long position from the other week eventually hit its trailing stop on a large pullback, locking in 130 pips along the way. From there, a new crossover was seen and a short forex signal popped up soon after.

AUD/USD 1-hour Forex Chart

AUD/USD 1-hour Chart

As for the euro pairs, the long positions are still open for now, with a trailing stop in play for EUR/USD.

EUR/USD 1-hour Forex Chart

EUR/USD 1-hour Chart

Unfortunately for EUR/JPY, the trailing stop wasn’t activated yet since price hadn’t gone 150 pips in the long trade’s favor.

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Chart

To summarize, here are the latest positions for the SMA Crossover Pullback forex system:

SMA Crossover Pullback Positions as of Dec. 11, 2015
Pair Position Entry SL PT Status P/L  (pips) P/L  (%)
AUD/USD Long .7100 .6950 .7400 Closed +130 +0.87%
EUR/USD Long 1.0.880 1.0730 1.1180 Open
EUR/JPY Long 133.50 132.00 136.50 Open
GBP/USD Long 1.5140 1.4990 1.5440 Open
AUD/USD Short .7290 .7440 .6990 Open

With that, the SMA Crossover Pullback system added 130 pips or a +0.87% gain last week, leaving a few more positions left before I take off for my home planet before the end of 2015. Stay tuned!

  • antonio

    hi, which is the SL e TP

    • I set a 150-pip SL and a 300-pip PT based on my entry, then I trail the stop by 150 pips once price moves 150 pips in the trade’s favor.

  • James

    Could you run the same system at a quicker time-frame possibly the 30mn/15mn to gain a better entry point ?

    • Might be too many signals for me to handle with short-term time frames but I don’t see any problem doing that. Have you tried it out?

      • James

        Yes tried it once, made my Profit Target, other times it don’t work that well, like cross-over is just short then crosses back under…

        • I see. Maybe smaller stops and profit targets might still work out but I imagine it’d be a lot of choppiness. How about larger MAs to filter out those volatile moves on a short-term time frame?

          • James

            But the problem with SMA’s is they are lagging indicators and on some crossovers the trend is nearly over when the 100 crosses the 200. What over Technicals do you use ? (MACD,RSI,Momentum,etc)

            Also have a question when the initial crossover happens(lets say 100SMA crosses above 200SMA) the Slow Stochastics says it’s overbought, so is that not overbought territory ?

          • Good point! I’m just focusing on MAs and Stochastic for now to keep things simple. For your second question, I wait for stochastic to pull out of the overbought/oversold regions before entering the actual trade to catch the momentum.

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