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I’m applying a few tweaks to the Inside Bar Momentum Strategy for the coming months, and I’m starting out with stop loss adjustments for April. Were there any improvements?

If this is the first time you’re reading about this, I suggest you take a look at the system rules first and its Q1 performance.

USD/JPY had a number of valid signals for the month, and I’ve zoomed in to the short-term time frames to see if stops or targets were hit first.

USD/JPY 4-hour Forex Chart
USD/JPY 4-hour Forex Chart

Here’s a summary of the trades taken on this pair, with the stops adjusted to 40% of the first candlestick’s height versus 20% in the original version of the system:

Guppy also had quite a number of signals for April but scored fewer wins compared to USD/JPY. Still, it’s worth noting that early exit signals on new inside bar formations managed to avoid losses.

GBP/JPY 4-hour Forex Chart
GBP/JPY 4-hour Forex Chart

Here’s a summary of the trades taken on this pair, also with the stops adjusted to 40% of the first candlestick’s height:

GBP/JPY 4-hour Forex Chart
GBP/JPY 4-hour Forex Chart

Looking back at the trades on both pairs, I’m starting to think that the stop loss adjustment is working out better for USD/JPY likely due to differences in volatility. I’ll probably give this version of the Inside Bar Momentum Strategy a go for a couple of months or so while comparing to the original one to gauge improvements in the win rate and to see if I should be applying the adjustment to just one pair. Stay tuned!