Forex System Update (May 30 – June 3, 2016): SMA Crossover Pullback

It was a mixed bag for the SMA Crossover Pullback forex mechanical system last week, as it took a huge hit from EUR/JPY. If you’re wondering what I’m talking about, make sure you look at the trading rules and risk management adjustments first.

In my update last week, GBP/USD had a long position open with the trailing stop activated. This stop was eventually hit on a large pullback to 1.4590.

GBP/USD 1-hour Forex Chart

GBP/USD 1-hour Forex Chart

EUR/USD continued to cruise lower after hitting its 300-pip PT the other week, but a new crossover formed on Friday to indicate a potential reversal. No stochastic pullback signals have popped up yet, though.

EUR/USD 1-hour Forex Chart

EUR/USD 1-hour Forex Chart

EUR/JPY was its usual choppy self as it made an upward crossover and long pullback entry signal, only to be stopped out just as quickly. A new crossover formed late in the week but there has been no pullback signal yet.

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

Lastly, AUD/USD finally made a new crossover after weeks of trending lower without looking back. Keeping my robot fingers crossed that this would result in another big win!

AUD/USD 1-hour Forex Chart

AUD/USD 1-hour Forex Chart

Here’s a summary of the positions as of June 3, 2016:

SMA Crossover Pullback Positions as of June 3, 2016
Pair Position Entry SL PT Status P/L  (pips) P/L  (%)
GBP/USD Long 1.4665 1.4665 1.4965 Closed +5 +0.03
EUR/JPY Short 123.90 125.40 120.90 Closed -150 -1.00
GBP/USD Short 1.4470 1.4620 1.4170 Open
AUD/USD Long .7225 .7075 .7525 Open

All in all, the system ended with a 145-pip loss or a 0.97% dent on the account, with the choppiness on EUR/JPY mostly to blame. I’m thinking of making adjustments on the moving average parameters on this pair to generate fewer crossovers and signals, possibly resulting in a better win rate. Or should I just remove EUR/JPY from this list altogether? Care to share your thoughts?