Forex System Q3 2016 Review: SMA Crossover Pullback

As promised, here’s a summary of how the SMA Crossover Pullback forex mechanical system performed for Q3 2016. If you’re wondering what I’m talking about, make sure you look at the trading rules and risk management adjustments first.

Before reading on, let’s cap off the quarter with a review of the positions from last week. All the pairs I’m watching for this particular strategy had new trades left open so these positions would be part of Q4 numbers.

EUR/USD had a short position left open from the other week but this was closed for a tiny loss when a new crossover formed. This was followed by a long stochastic pullback signal on Friday.

EUR/USD 1-hour Forex Chart

EUR/USD 1-hour Forex Chart

Cable hit its profit target on the selloff a few weeks back and there haven’t been any new crossovers yet so no other positions were opened.

GBP/USD 1-hour Forex Chart

GBP/USD 1-hour Forex Chart

Similarly, there were no new crossovers or stochastic pullback signals on EUR/JPY, as its new positions may have to wait until October.

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

Lastly, AUD/USD had a new crossover the other week but it took some time before stochastic dipped into the oversold region and pulled right back up to generate a long signal.

AUD/USD 1-hour Forex Chart

AUD/USD 1-hour Forex Chart

Here’s a summary of the positions as of September 30:

SMA Crossover Pullback Positions as of Sept. 30, 2016
Pair Position Entry SL PT Status P/L  (pips) P/L  (%)
EUR/USD Short 1.1230 1.1380 1.0930 Closed -20 -0.13
EUR/USD Long 1.1175 1.1025 1.1475 Open
AUD/USD Long 0.7675 0.7525 0.7975 Open

So the system ended the quarter with a teensy 20-pip loss or a 0.13% dent on the account… Not exactly the strong finish I had hoped for but let’s see how it all adds up for the quarter. Here you go!

SMA Crossover Pullback Profit/Loss for Q3 2016
Week P/L in pips P/L in %
July 4-8 +345 +2.30
July 11-15 0 0
July 18-22 +35 +0.24
July 25-29 -135 -0.90
Aug 1-5 +300 +2.00
Aug 8-12 -40 -0.27
Aug 15-19 +235 +1.57
Aug 22-26 +184 +1.23
Aug 29-Sept 2 -150 -1.00
Sept 5-9 +75 +0.50
Sept 12-16 -175 -1.17
Sept 19-23 +225 +1.50
Sept 26-30 -20 -0.13

All in all, the system ended with a 879-pip win or a 5.95% gain (compounded) on the account as most weeks closed positive while the losses were minimal. It was off to a strong start with a big win in the first week of July and another 2% gain in the first week of August, followed by back-to-back weeks of more than 1% wins. September was a bit shaky as market conditions were pretty tight for the dollar pairs but the system managed to close that month in the green as well.

That brings the year-to-date total to 19.63% after adding the Q1 2016 and the Q2 2016 numbers. So far so good, and we’ve still got one more quarter left. Stay tuned, humans!


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