Forex System Update: SMA Crossover Pullback (Oct. 31-Nov. 4, 2016)

Dollar pairs couldn’t seem to make their mind up so the SMA Crossover Pullback system was caught up in these flip-flopping moves. 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, AUD/USD had a short position open that seemed to be going nowhere. The moving averages were close together as price was stuck in a large range and the selloff wasn’t enough to activate the trailing stop. Fortunately the early exit signal on a new crossover still allowed some gains to be locked in.

AUD/USD 1-hour Forex Chart

AUD/USD 1-hour Forex Chart

EUR/USD made an upward crossover that was eventually followed by a stochastic pullback signal after price already made a bit of a bullish run. I hope this wasn’t too late, though!

EUR/USD 1-hour Forex ChartEUR/USD 1-hour Forex Chart

EUR/USD 1-hour Forex Chart

EUR/JPY also had an upward crossover then the long stochastic pullback signal materialized halfway into the week. Now this one looks more promising since price gapped higher the following Monday.

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

Cable had a previous short position that was also closed on a new crossover. The pair made a strong rally soon after, but no pullback signals have popped up yet.

GBP/USD 1-hour Forex Chart

GBP/USD 1-hour Forex Chart

Trade Summary:

SMA Crossover Pullback Positions as of Nov. 4, 2016
Pair Position Entry SL PT Status P/L  (pips) P/L  (%)
GBP/USD Short 1.2240 1.2390 1.1940 Closed -50 -0.33
AUD/USD Short .7690 .7840 .7390 Closed +30 +0.20
EUR/JPY Long 114.90 113.40 117.90 Open
EUR/USD Long 1.1085 1.0935 1.1385 Open

With that, the SMA Crossover Pullback system ended the week with a tiny 20-pip loss or a -0.13% dent on the account because of the sideways price action. New trends seem to be forming these days, though, so I’m hopeful that the system can stage a solid comeback later on. Do you think the system can follow up its strong performance like it did for Q3? Stay tuned for my next updates!

  • Jens

    Thank you for another post. I have been following this system now the past 2 weeks, and I am in the green by 400+ pips. Thanks to the election the EURUSD trade rallied up and hit the 300pip target. It goes to show that finding a systemis easy, whats hard is keeping yourself disciplined and following your rules. Thanks again for posting!