Forex System Update (Apr. 11-15, 2016): SMA Crossover Pullback

Chop, chop, chop! The SMA Crossover Pullback forex mechanical system churned out a few more losing trades last week due to ranging market conditions. If you’re wondering what I’m talking about, make sure you look at the trading rules and risk management adjustments first. Oh, and I’ve got the compiled results for Q1 2016, too!

Just after the long position on EUR/JPY got stopped out the other week and a new crossover formed, a stochastic pullback signal soon materialized.

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

The short AUD/USD position from the previous week ended up hitting its full stop loss even before a new crossover took place. So far, no pullback signals have popped up yet.

AUD/USD 1-hour Forex Chart

AUD/USD 1-hour Forex Chart

EUR/USD had a long position which eventually hit its trailing stop at breakeven, as price made a downside break from consolidation.

EUR/USD 1-hour Forex Chart

EUR/USD 1-hour Forex Chart

GBP/USD showed a pullback signal for a short position at 1.4240, but this had to be closed early at a new crossover for a small profit. A long signal was soon generated and this one’s still open.

GBP/USD 1-hour Forex Chart

GBP/USD 1-hour Forex Chart

Here’s a summary of the positions as of April 15, 2016:

SMA Crossover Pullback Positions as of Apr. 15, 2016
Pair Position Entry SL PT Status P/L  (pips) P/L  (%)
EUR/JPY Short 123.75 125.25 120.75 Open
AUD/USD Short .7550 .7700 .7250 Closed -150 -1.00
EUR/USD Long 1.1325 1.1175 1.1625 Closed 0 0
GBP/USD Short 1.4240 1.4390 1.3940 Closed +30 +0.20
GBP/USD Long 1.4150 1.4000 1.4450 Open

With that, the system ended up with a 120-pip loss or a 0.80% dent on the account. Not lookin’ so good especially after that 165-pip loss from the other week! Still, I’m hopeful that this system can catch a big win sooner or later to make up for these losses. Or do you think it’d be better to steer clear of this trend-following strategy for the rest of Q2?