Partner Center Find a Broker

Ka-ching, ka-ching! Take a look at how the Inside Bar Momentum mechanical trading system bagged a few winning positions recently.

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 signals for USD/JPY:

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 were triggered and if any stops or targets were hit.

usdjpy inside bar signals

Winner, winner, chicken dinner! This pair scored three consecutive wins in hitting the full profit targets, chalking up a 65-pip gain for the week. The percentage P/L depends on how position sizes were calculated.

And here are the inside bar signals for GBP/JPY:

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

The first position wasn’t off to such a good start as it gained some bearish momentum but pulled up to the stop loss eventually. A trailing stop would’ve helped in this case!

gbpjpy inside bar

Fortunately, the next couple of positions wound up hitting their targets and made up for the earlier loss. This allowed Guppy to escape with an 8-pip gain for the week, bringing the system total to 73 pips. Not bad, eh?

If this strategy ain’t your cup of tea or if you’re looking for one that might be more appropriate for current market conditions, you may wanna check these out, too:
SMA Crossover Pullback System
Short-Term Bollinger Reversion
HLHB Trend-Catcher System
Happy Hunter Trading System
Cowabunga System Daily Update