It’s been a rough week for this mechanical trading system as USD/JPY and GBP/JPY struggled to maintain momentum in either direction. Here’s what’s up!
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 on both USD/JPY and GBP/JPY.
The size of the stop loss was adjusted from the original 20% of the first candlestick to 40% of its length.
First up, here’s what went on with USD/JPY:
This pair formed a few inside bar patterns here and there but didn’t really generate any valid signals for the system.If you scan the chart above, you’d notice that some potential short signals formed before a rally or possible long signals came up before a selloff. Bah!
Still, I ain’t complaining because USD/JPY was able to avoid getting caught up in a lot of those whipsaws we’ve been seeing lately.
Anyway, here’s what went on with Guppy:
This one managed to catch three valid plays for the week, and here’s how the positions fared:
GBP/JPY was off to a rocky start as it snagged back-to-back losses on a short and long position. Price barely made it to the targets before quickly moving in the opposite direction.Fortunately, the last short position was able to ride a bit more downside momentum and hit its full profit target.
Unfortunately, this win wasn’t enough to make up for the previous two losses.
This leaves the Inside Bar Momentum strategy down by 37 pips for the week. The percentage win/loss depends on how position sizes are calculated.