A good number of inside bar patterns formed on USD/JPY and GBP/JPY recently but only a handful generated valid signals for the Inside Bar Momentum Strategy. At least one of those hit its profit target!
In my previous updates, I’ve been running a test of the adjusted stop loss size (from the original 20% of the first candlestick to 40% of its length) on both USD/JPY and GBP/JPY. In the first couple of weeks, I saw more improvements on the former but the latest positions have churned out better results for the latter as well.
Before we get to that, here’s a look at the latest signals:
Only two out of all these inside bar formations on USD/JPY actually led to open positions while the rest mostly served as early exit signals. I zoomed in to the short-term time frames to see if any stops or targets were hit.
Just one signal was triggered for Guppy but this went all the way down to its profit target. Woot woot!
Had the previous stop size been applied on this particular signal, the position would’ve gotten stopped out on a pullback instead of having enough leeway to stay open until momentum eventually picked up.
With that, I’m gonna chalk up more brownie points in favor of the latest stop size tweaks for both pairs and I’ll continue running these changes in the weeks ahead. Stay tuned!