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It’s a mixed bag for this mechanical system as it scored a fair amount of wins on both pairs. Did it end up positive overall?

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 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.

Here are the valid signals on USD/JPY:

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

As in the previous week, there were a few more inside bar patterns but only three were able to hit their entry levels. Here’s how those valid signals turned out:

It was a rough start as the first position actually gained enough momentum to come close to the target but turned around and hit its stop instead. Fortunately, the next positions snagged back-to-back full wins.

Here’s how Guppy is looking:

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

This one snagged a couple of valid plays, with one win and one loss.

Thanks to a relatively large win on its first short position, this pair was able to scrape by with a 16-pip net gain for the week. USD/JPY’s 18 pips added up to a total of 34 pips for the system and the percentage gain depends on how position sizes were calculated.

ICYMI, check out how the Inside Bar Momentum Strategy fared for Q3 2018 and how other mech systems are stacking up in Forex Ninja’s Systems Showcase!