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The Inside Bar Momentum Strategy saw losses from its signals this week as they got whipsawed by volatile price action.

If this is the first time you’re reading about this forex 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.

For the most part, USD/JPY saw valid signals that were on the right side of the trade.

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

Unfortunately, price took cues from its behavior from the previous week and stopped out USD/JPY’s valid signals before they eventually reached their profit targets.

All hope is not lost (so they say. I wouldn’t know since I don’t have feelings) because there’s still one long trade that’s open and it looks poised to hit its profit target.

The system is down by a net of 30 pips so far with one position still open until the next update:

Now here’s what went on with Guppy:

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

Price didn’t show any valid signal until the last two days when it validated a long trade and then a short position.

Unfortunately for the system, the candlesticks before the signal candles were small enough that price hit the tight stops before it had the chance to make significant moves.

Here’s how it turned out:

The losses translate to a net loss of 23 pips for the system this week.

All in all, the Inside Bar Momentum Strategy managed to lose a total of 53 pips from four closed trades in the last week.

Keep in mind that the percentage win/loss depends on how position sizes are calculated.

ICYMI, check out how the Inside Bar Momentum Strategy fared for Q2 2020 and how other mech systems are stacking up in Forex Ninja’s Systems Showcase!