Forex System Update: SMA Crossover Pullback (Jan 25-29, 2016)

How did this SMA Crossover Pullback mechanical system fare for the first month of the year? If you’re wondering what I’m talking about, make sure you look at the trading rules and risk management adjustments first. Here are the forex signals from last week:

As I’ve shown in my previous update, EUR/USD had a long position opened at 1.0900 but this had to be closed when a new crossover formed at 1.0800. A stochastic pullback soon followed to generate a short signal then this position was exited at a new crossover, too.

EUR/USD 1-hour Forex Chart

EUR/USD 1-hour Forex Chart

EUR/JPY also had an open position from the previous week and this was closed when the moving averages made an upward crossover.

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

GBP/USD finally made a new crossover towards the middle of the week and a long position was opened at 1.4250. Price went all the way up to a high of 1.4413, which meant that the 150-pip trailing stop was activated, causing the trade to get closed near breakeven before the weekend.

GBP/USD 1-hour Forex Chart

GBP/USD 1-hour Forex Chart

Lastly, AUD/USD had a new upward crossover followed by a stochastic pullback signal to enter a long position at .6950. Price reached a high of .7141 last week, which means that the trailing stop is already in play.

AUD/USD 1-hour Forex Chart

AUD/USD 1-hour Forex Chart

Here’s a summary of the positions open as of January 29:

SMA Crossover Pullback Positions as of Jan. 29, 2016
Pair Position Entry SL PT Status P/L  (pips) P/L  (%)
EUR/USD Long 1.0900 1.0750 1.1200 Open -100 -0.67
EUR/JPY Short 127.40 128.90 124.40 Open -130 -0.87
EUR/USD Short 1.0850 1.1000 1.0550 Closed -30 -0.20
GBP/USD Long 1.4250 1.4100 1.4550 Closed 0 0
AUD/USD Long .6950 .6800 .7250 Open

Yipes! All in all, not such a good week for this forex system, as it chalked up a total of 260 pips in losses or a 1.74% dent on the account. Then again, it looks like AUD/USD might be able to save the day with its long position.

For the month of January, the system managed to squeeze out a meager 0.12% gain, even with volatile price action and quick reversals. Stay tuned to my weekly updates to see if it might perform better this February!