Forex System Update: SMA Crossover Pullback (June 22-26, 2015)

Greetings, dear humans! I’m seeing a new crossover forming on the SMA Crossover Pullback forex mechanical system this week. Has it generated a new signal yet?

Uhh… nope! But I’m keeping my fingers crossed for this one! Oh wait, I don’t really have any fingers.

EUR/USD 1-hour Forex Chart

EUR/USD 1-hour Forex Chart

The short-term 100 SMA crossed below the long-term 200 SMA, indicating that a downtrend is just beginning. I’m tempted to hop in a short forex trade right away but the SMA Crossover Pullback system rules state that I have to wait for stochastic to move down from the overbought area and indicate a pullback from the selloff before taking a valid sell signal.

No worries! The buy signal that popped up earlier this month managed to generate plenty of profits so far, as I discussed in my previous blog update. I thought of running back tests on a much longer time span until I realized that my price history logs go only as far back as February 2015, which isn’t really enough data. For now, we’ll have to make do with these forward tests!