Not all inside bar patterns churned out valid signals for this strategy, but the ones that did mostly turned out to be winners. Take a look!
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:As you can probably tell from the chart, the pair did form several inside bar patterns but only the ones marked above had their entries triggered.
Here’s how the opened positions turned out:
The first three valid signals all chalked up gains while the last one got stopped out. Still, the wins were enough to put USD/JPY up by 48 pips for the week.
Now here’s what went on with Guppy:Just like the other pair, GBP/JPY also saw a bunch of inside bar patterns but not all generated open positions.
Also, its first few positions fared much better than the last, as the pair scored back-to-back wins then got stopped out on the third play.
Here’s how it turned out:
All in all, the Inside Bar Momentum Strategy managed to catch a total of 100 pips, adding to the gains over the past couple of weeks.
The percentage win/loss depends on how position sizes are calculated.