Forex System Update: SMA Crossover Pullback (Jan. 4-8, 2016)

Greetings, forex earthlings! Here’s our first glimpse on how the SMA Crossover Pullback system has performed at the start of this year. 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.

Here’s how it all went down:

As I’ve shown y’all in last week’s update, GBP/USD had a short position open at 1.4920. Price made a quick pullback but eventually resumed its drop, hitting the target at 1.4620 to score a 2% win.

GBP/USD 1-hour Forex Chart

GBP/USD 1-hour Forex Chart

The long position on EUR/USD was closed early on a new crossover, which managed to limit the losses to just 10 pips. A new short signal was generated soon after, with the trailing stop able to lock in a few more pips.

EUR/USD 1-hour Forex Chart

EUR/USD 1-hour Forex Chart

Unfortunately for EUR/JPY, there were no new crossovers this time.

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

The long trade on AUD/USD also got stopped on on a new crossover, but another short signal materialized before the end of the week.

AUD/USD 1-hour Forex Chart

AUD/USD 1-hour Forex Chart

Here’s a summary of the positions that were closed and left open as of January 8:

SMA Crossover Pullback Positions as of Jan. 8, 2016
Pair Position Entry SL PT Status P/L  (pips) P/L  (%)
GBP/USD Short 1.4920 1.5070 1.4620 Closed +300 +2.00%
EUR/USD Long 1.0915 1.0765 1.1215 Closed -10 -0.07%
AUD/USD Long .7265 .7135 .7565 Closed -135 -0.90%
EUR/USD Short 1.0905 1.1055 1.0605 Closed +45 +0.30%
AUD/USD Short .7055 0.7205 0.6755 Open

All in all, the forex system was able to chalk up a total of 200 pips or a 1.33% gain on the account, which is a pretty good start for the year. I’m a bit worried that the AUD/USD short signal is once again taking place right at the end of the trend, which makes me consider setting a time limit for any pullback signals after a new crossover occurs.

What do you guys think? I’m enjoying all the feedback I’m getting on this mechanical system and I just wanna give a shoutout to those folks who’ve been working on an EA for this one. Keep it up!

  • Sam Ule Mgenious

    What is the value of your moving average

    • It’s the 100 simple moving average and the 200 simple moving average. Are you trying this system out yourself?

      • Sam Ule Mgenious

        I have a similar strategy but the value of Moving average is different. I am using 3 moving averages. 200ma, 40ma and 20ma. I buy at pull back when market touches 20ma. I confirm my entries with the indicator below.

        • Oh cool! I imagine this works really great in trending markets, huh? How wide are your stops for these trades? Sorry for all the questions but this system piqued my interest, too!

          • Sam Ule Mgenious

            But I use Exponential moving averages since I find it better that sma. Yeah, it really works great in trending market. I usually place my stops half the distance between 40ema and 200ema.

          • I see, yeah that makes a lot of sense. Did you code an EA for this or do you manually run your system? Looks like a really good one, and it probably raked in a lot of gains these days, huh?

          • Sam Ule Mgenious

            I do not know how to code but am sure it would be so nice if someone coded an EA from this strategy. I do manual trading and it makes profits everyday.

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