Forex System Update: SMA Crossover Pullback (Oct. 17-21, 2016)

A bit of sideways price action for some pairs but the SMA Crossover Pullback mechanical system still caught one big win! If you’re wondering what I’m talking about, make sure you look at the trading rules and risk management adjustments first.

In my earlier update, EUR/JPY had a new crossover and short stochastic pullback signal at the end of the week. This one’s still open and locking in profits as price continued heading south and put the trailing stop in play.

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

Cable pulled up from its seemingly non-stop slide until a new crossover FINALLY materialized, followed by a long pullback signal at the end of the week.

GBP/USD 1-hour Forex ChartGBP/USD 1-hour Forex Chart

GBP/USD 1-hour Forex Chart

AUD/USD was stuck in a big range for the week, causing its previous short position to be closed on a new crossover, which was then followed by a long stochastic signal.

AUD/USD 1-hour Forex Chart

AUD/USD 1-hour Forex Chart

Last but most definitely not least is this EUR/USD short position which hit is full profit target! *happy robot dance*

EUR/USD 1-hour Forex Chart

EUR/USD 1-hour Forex Chart

Trade Summary:

SMA Crossover Pullback Positions as of Oct. 21, 2016
Pair Position Entry SL PT Status P/L  (pips) P/L  (%)
AUD/USD Short 0.7575 0.7725 0.7225 Closed -55 -0.36
EUR/USD Short 1.1190 1.1340 1.0890 Closed +300 +2.00
EUR/JPY Short 114.70 116.20 111.70 Open
GBP/USD Long 1.2200 1.2050 1.2500 Open
AUD/USD Long .7630 .7480 .7930 Open

With that, the SMA Crossover Pullback system ended the week with a 245-pip win or a 1.64% gain on the account. The recent euro trends are paying off and I do hope that this kind of momentum keeps up in the coming weeks since there are still some positions left open. Do you think the system can follow up its strong performance like it did for Q3? Stay tuned for my next updates!


Here are some books if you want to get deeper into building systems & algorithms. BabyPips.com receives a small credit from any purchases through the Amazon links above to help support the free content and features of our site…enjoy!

  • Jens

    Not bad results! I have another question, what do you do when a signal happens while you are asleep? And then you wake up and see that a buy/sell signal happened 5 hours ago? Do you enter, og wait for a new confirmation? : ) Thank you! : )

    • Thanks for checking out my blog! Mech traders who want to keep their systems up and running even while they’re asleep usually come up with a code that automates all those orders, so that’s what I’m running for this one 🙂

      • Jens

        Thank you for your reply! What if people dont have access to this code, what would you recommend them to do? 🙂

        • Hmm, when trading this system manually, I usually don’t mind missing out on some signals or catching some late. One way to go about it would be to take a market entry if the R:R is still at least 1:1 in terms of the stop/target relative to the entry price.

  • Thanks for following my updates, I really appreciate it! And it’s great that you’re developing your EA for this. To answer your questions:

    1) The long/short position is triggered at the open of the next candle after stochastic pulls up from the oversold area so yep, I do wait for the 1-hour candle to close first when there’s a move past 25/75 then use the open price of the next candle to enter.

    2) For the system results that I post, I don’t rely on broker’s feeds in order to remove the bid/ask spread from the equation so the results would likely differ a bit in live trading. I do suggest you try it out with different brokers on demo accounts first to get a feel of how trade execution goes with each.

    Hopefully this helps you out! Keep me posted on how your EA is turning out and do ask more questions if you gotta. See you around!