Forex System Update: SMA Crossover Pullback (Feb. 1-5, 2016)

Boo yeah! The SMA Crossover Pullback forex mechanical system is off to a good start this month, as it was able to score a couple of big wins last week. If you’re wondering what I’m talking about, make sure you look at the trading rules and risk management adjustments first.

As I’ve shown in my previous update, AUD/USD had a long position opened the other week and this eventually hit the 300-pip profit target.

AUD/USD 1-hour Forex Chart

AUD/USD 1-hour Forex Chart

EUR/USD had a new signal early in the week and this also made it all the way up to its profit target and beyond.

EUR/USD 1-hour Forex Chart

EUR/USD 1-hour Forex Chart

EUR/JPY had an upward crossover the other week but the stochastic pullback confirmation only emerged last week, generating a long signal at 131.50.

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

As for GBP/USD, no new crossovers were made yet. Ho humm…

GBP/USD 1-hour Forex Chart

GBP/USD 1-hour Forex Chart

Here’s a summary of the positions as of February 5:

SMA Crossover Pullback Positions as of Feb. 5, 2016
Pair Position Entry SL PT Status P/L  (pips) P/L  (%)
AUD/USD Long .6950 .6800 .7250 Closed +300 +2.00
EUR/USD Long 1.0850 1.0700 1.1150 Closed +300 +2.00
EUR/JPY Long 131.50 130.00 134.50 Open

All in all, the forex mechanical system scored a 600-pip or a +4.00% gain on the account, which is a pretty good week in my book! Then again, this type of strategy really performs better in a strongly trending market environment like the one we’re seeing these days.

I’m still considering adding another technical indicator that can signal whether trending conditions are in play or not, allowing the system to reduce those small losses that can add up during choppy situations. Any suggestions?