This strategy had a mixed run as it chalked up a couple of losing positions and just one big win. Were the gains enough to offset the losses?
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 caught one valid short signal early on that unfortunately got stopped out before price gained enough momentum to reach the profit target.
This was followed by few days’ worth of sideways price action that had a couple of inside bar formations that didn’t have any entries triggered.
USD/JPY broke out of consolidation and made a sharp selloff, but there weren’t any valid short signals to catch that move.
Anyway, here’s how the sole position turned out:
Now here’s what went on with Guppy:
This pair was off to a slow signal-free start before eventually logging in a couple of valid plays.The first short position already had a bit of downside momentum working in its favor, but it had to be closed early when the next inside bar pattern formed.
The second short position fared much better as it scored a relatively big win when it went all the way down to the profit target.
Here’s how those positions turned out:
Even with a couple of small losses, the system still managed to end up with a total of 31 pips for the week. Phew!
The percentage win/loss depends on how position sizes are calculated.