Even with ranging market conditions on the yen pairs, the Inside Bar Momentum strategy still managed to chalk up a few wins. Take a look!
For the past few weeks, 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 and I’m seeing more improvements for both pairs.
The system generated these inside bar signals for USD/JPY in the past week:
Zooming in to the short-term time frames helped me check if these signals were triggered and if any stops or targets were hit.
The first position hit its full PT for a 21-pip gain while the third position raked in 30 pips. However, the second position was stopped out for a 21-pip loss.
Here are the inside bar signals for GBP/JPY:
Just a couple of signals for this pair, with one hitting its profit target and the other getting stopped out.position sizes were calculated.
Price action has mostly been sideways for the past few days, so I was a bit surprised that this mechanical system still managed to catch some pips. By the looks of it, traders must be holding tight with Brexit negotiations already kicking off this week, probably waiting to see if the U.K. can walk out with a good deal or if the E.U. is likely to stay stubborn.
Either way, this is giving me a bit more confidence that the strategy can perform well in both range-bound and trending market conditions. I do prefer strong trends, though, so I’ll keep my robot fingers crossed that we’ll see more directional plays in the days ahead.