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