There was plenty of action on USD/JPY for the past few days but unfortunately, the Inside Bar Momentum Strategy didn’t churn out any valid signals. If this is the first time you’re reading about this, I suggest you take a look at the system rules first.
Because of that, I decided to turn my attention to another yen pair. As some of my dear readers and fellow mech system fanatics pointed out, this strategy works well on GBP/JPY also. As always, I’ve marked the valid inside bar signals on the 4-hour time frame from January to February this year.
Whew, that’s a lot of signals! I then zoomed in to shorter-term time frames to see how the price ticks turned out before any early exit conditions were met. Here’s a summary of the trades taken:
Compared to my previous review of USD/JPY, this pair seems to have a better win rate although it’s still below 50%. Using a wider stop or a trail could’ve added a few more positive positions for GBP/JPY for the first couple of months of 2017 but I think I’ll stick to the basic version of the system and watch both USD/JPY and Guppy from here. Any other tips on how to manage risk better or how you compute position sizes for each trade?