As promised in my earlier update, I’m gonna give this basic version of the Inside Bar Momentum forex mech strategy a run for the next few weeks to get a better idea of which tweaks might work. I’ve gotten a lot more signals than before and a few more wins, take a look!
First off, I’ve marked the valid inside bar signals on the entry candles in USD/JPY’s 4-hour chart. Then I zoomed in to shorter-term time frames to see how the price ticks turned out before any early exit conditions were met.
If you prefer a table format, here’s a summary of the positions:
Aha! The system hit the targets on three out of eight signals for the past week and ended up with a breakeven position which was closed early on a new inside bar formation. Four trades wound up hitting their stops but I could identify a couple that would’ve turned up profitable if the stop had been trailed at some point.
In that case, I’m leaning towards tweaking the system by introducing a trailing stop or simply adjusting it down to breakeven once price moves a certain % in direction of the trade. If you wanna give this system a go or look into some potential tweaks, here are a few suggestions and backtest results from my fellow mech system traders!
*beep beep boop beep* 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!