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The Inside Bar Momentum Strategy 2.0 had a pretty good run in the previous quarter so I’ll keep running this version in the next few months. ICYMI, check out the system’s Q2 2017 performance!

But if this is the first time you’re reading about this strategy, I suggest you take a look at the system rules before reading on.

Also, this tweaked version makes use of an adjusted stop loss size (from the original 20% of the first candlestick to 40% of its length) on both USD/JPY and GBP/JPY.

The system generated these inside bar signals for USD/JPY in the past couple of weeks:

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.

Four out of five positions ended up profitable! Even the one that had to be closed early on a new inside bar formation. Woot woot!

Here are the inside bar signals for GBP/JPY:

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

As you’ve probably noticed, a few of those inside bar patterns had entry orders that weren’t triggered. Here’s how the opened positions fared:

Two winners out of four trades? That’s not so bad. In terms of pips, these positions would’ve still yielded a 7-pip gain, but of course the P/L % depends on how the position sizes were calculated.

Also, GBP/JPY has a long position left open as of this writing but it seems to be within striking distance of its PT. I hope I didn’t jinx it, though!

All in all, I’d say it was a pretty good start for the Inside Bar Momentum strategy in Q3 2017 and I do hope this mech system yields pretty good metrics like it did the previous quarter. As I’ve mentioned in my review, the stop loss adjustments may have sacrificed some profits but the rest of the numbers showed improvements, particularly when it comes to consistency.