Forex System Update: SMA Crossover Pullback (Oct. 10-14, 2016)

New euro trends seem to be working out for the SMA Crossover Pullback forex mechanical system lately. 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/JPY was left with a long position open but this had to be closed on a new crossover. A stochastic pullback signal materialized soon after.

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

Cable’s downtrend is still going strong but, unfortunately, there still haven’t been any new crossovers that’d allow the system to hop in the selloff.

GBP/USD 1-hour Forex Chart

GBP/USD 1-hour Forex Chart

AUD/USD had a downward crossover from the previous week but it took a while before a stochastic pullback signal to short popped up.

AUD/USD 1-hour Forex Chart

AUD/USD 1-hour Forex Chart

Lastly, EUR/USD is establishing a downtrend also and a stochastic pullback signal to short near 1.1200 materialized. Price has already dropped more than 150 pips so the trailing stop is already in place. So far, so good!

EUR/USD 1-hour Forex Chart

EUR/USD 1-hour Forex Chart

Trade Summary:

SMA Crossover Pullback Positions as of Oct. 14, 2016
Pair Position Entry SL PT Status P/L  (pips) P/L  (%)
EUR/JPY Long 115.40 113.90 118.40 Closed -95 -0.63
AUD/USD Short 0.7575 0.7725 0.7225 Open
EUR/USD Short 1.1190 1.1340 1.0890 Open
EUR/JPY Short 114.70 116.20 111.70 Open

With that, the SMA Crossover Pullback system ended the week with a 95-pip loss or a 0.63% dent on the account. It looks like new trends are just starting to gain traction, except on GBP/USD, so I’m keeping my metal fingers crossed that the open positions would turn out profitable. Do you think the system can follow up its strong performance like it did for Q3? Stay tuned for my next updates!


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