Forex System Update: SMA Crossover Pullback (Sept. 12-16, 2016)

Not the best week for the SMA Crossover Pullback system since dollar and yen pairs were treading carefully before the FOMC and BOJ statements. 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, EUR/USD had a long position that went nowhere as price just cruised sideways in a tight range before eventually breaking lower and forming a new downward crossover.

EUR/USD 1-hour Forex Chart

EUR/USD 1-hour Forex Chart

As I was fretting about last week, the long order materialized at the top of the climb for Cable as price started continued to move lower at the start of the week. This position was closed on a new crossover then a stochastic pullback short signal was generated soon after.

GBP/USD 1-hour Forex Chart

GBP/USD 1-hour Forex Chart

AUD/USD had a new long position opened after the other week’s upward crossover but just like Cable, this happened too late and was closed on a new crossover. A short signal popped up on a pullback before the end of the week.

AUD/USD 1-hour Forex Chart

AUD/USD 1-hour Forex Chart

Lastly, EUR/JPY also failed to sustain its dive after forming a downward crossover and short signal from the previous week, causing the position to get closed at breakeven when the moving averages began oscillating.

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

Trade Summary:

SMA Crossover Pullback Positions as of Sept. 16, 2016
Pair Position Entry SL PT Status P/L  (pips) P/L  (%)
GBP/USD Short 1.3340 1.3190 1.3640 Closed -90 -0.60
EUR/USD Long 1.1250 1.1100 1.1550 Closed -25 -0.17
EUR/JPY Short 115.15 116.65 112.15 Closed 0 0
AUD/USD Long 0.7520 0.7370 0.7820 Closed -60 -0.40
GBP/USD Short 1.3250 1.3400 1.2950 Open
AUD/USD Short 0.7515 0.7665 0.7215 Open

With that, the SMA Crossover Pullback system ended the week with a 175-pip loss or a 1.17% dent on the account. Range-bound action ahead of the top-tier central bank events for the month didn’t do the system any favors since it prevented strong trends from materializing.

I’m looking forward to tallying the numbers for the latest week and the upcoming ones, though, as the monetary policy statements seem to have set the tone for longer-term currency action. Keeping my robot fingers crossed that these will translate to big wins for this mech system!


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  • MICHAEL O’CALLAGHAN

    AUD.USD seems to have had it’s buy triggered earlier (on sep 9th) as the indicators seem to have lined up then. pls check that one.

    • Hmm, care to share your charts for that one? I’m seeing a bit of a stochastic climb around that date on my own chart but it wasn’t registered as a valid signal on the system because it didn’t cross 25.

      • MICHAEL O’CALLAGHAN

        It appeared to cross on your chart too, bit of unfortunate timing..will try to attach an enlarged snip from your chart.
        https://uploads.disquscdn.com/images/7e809a3cce33893a99fcaf88458503f1ce27220f2a51a1344ff08833288e3ba1.png

        • MICHAEL O’CALLAGHAN

          That was too close for comfort. Looks like your level lines are set to 80/20 also..can that be adjusted to 75/25 ?

          • MICHAEL O’CALLAGHAN

            We could also be seeing slight differences in data feed for prices which occasionally make things hard to follow 🙂

          • Yeah, fair point. Differences in spread also have to be factored in so sometimes the entries might be slightly different or stops/targets could be missed.

          • Yep, looks like it was too close for comfort and my processors didn’t flag it as a valid signal, likely because it crossed back down on the following candle when the entry would supposedly be generated.