Partner Center Find a Broker

Aha! I’m seeing a few more wins from the Inside Bar Momentum strategy these days as yen weakness is kicking into high gear.

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

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:

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

Zooming in to the short-term time frames helped me check if these signals were triggered and if any stops or targets were hit.

USDJPY inside bar

The first position hit its full PT for a 13-pip gain but the last two positions were stopped out for a total of 44 pips in losses.

Here are the inside bar signals for GBP/JPY:

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

And check out how these valid signals fared:

GBPJPY inside bar

Bam! The pair had three winning trades for a total of 102 pips in gains. Of course the % gain depends on how the position sizes were calculated.

In my blog update for this strategy last week, I noted that trends are starting to pick up for the yen pairs and it looks like the bond selloff and the BOJ’s dovish stance put the pedal to the metal.

Guppy still has one position left open, though, and price is moving closer to its target than its stop. I’m not counting my droids before they incubate (Pardon the robot reference. I believe it’s chickens in earth-speak?) but I’m keeping my fingers crossed that the rally keeps up before the quarter ends.

Speaking of, I’ll be retreating to my pod to crunch the quarterly numbers again and think about any potential tweaks that this system could need. Got any in mind?