Forex System Update: SMA Crossover Pullback (Jan. 18-22, 2016)

Greetings, forex earthlings! I come bearing a quick update on the SMA Crossover Pullback mechanical system. 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.

As I’ve shown in the previous update, only AUD/USD had an open position going, with the 150-pip trailing stop activated. This stop was hit on a large rally, allowing the system to lock in 80 pips or a 0.53% gain.

AUD/USD 1-hour Forex Chart

AUD/USD 1-hour Forex Chart

EUR/JPY finally picked a direction after the moving averages kept oscillating tightly, eventually generating a short order at 127.40.

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

EUR/USD had an upward crossover from awhile back, only giving the stochastic pullback signal last week and generating a long signal at 1.0900.

EUR/USD 1-hour Forex Chart

EUR/USD 1-hour Forex Chart

There were still no new crossovers on GBP/USD, preventing the forex system from hopping on the ongoing downtrend.

GBP/USD 1-hour Forex Chart

GBP/USD 1-hour Forex Chart

Here’s a summary of the positions that were closed and left open as of January 22:

SMA Crossover Pullback Positions as of Jan. 22, 2016
Pair Position Entry SL PT Status P/L  (pips) P/L  (%)
AUD/USD Short .7055 0.7205 0.6755 Closed +80 +0.53
EUR/USD Long 1.0900 1.0750 1.1200 Open
EUR/JPY Short 127.40 128.90 124.40 Open

It looks like we’re seeing a lot of choppy forex price action once more, as market participants are still deciding on a clearer direction. Still, I’m not complaining about the 80-pip gain or 0.53% profit it was able to catch on AUD/USD, just before the pair appeared to bottom out.

The open positions on the euro pairs seem prime for an early exit on a new crossover so I’m keeping my robot fingers crossed that the system is able to squeeze out a few pips or at least trim the potential losses. Until my next update, stay tuned!