Mech System Update: Inside Bar Momentum Strategy 2.0 (Dec. 4 – 11)

Just as in the other week, one pair had a shaky run while the other scored pips. Did the strategy end up positive overall?

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.

USD/JPY saw a handful of inside bar patterns, but only two were able to generate valid signals and see their entries get triggered.

Both signals actually had momentum going for them, but the stops were a bit too tight. Instead of being able to keep the position open until the trend picked up, the trades wound up getting stopped out right away.

With that, USD/JPY wound up with a 21-pip loss for the week:

Now here’s what went on with GBP/JPY:

This pair caught just one valid signal, even though it also saw a bunch of inside bar patterns.

Just as in the previous update, Guppy scored pretty decent gains!

Here’s how it turned out:

The pair capped the week off with a neat 32-pip win, bringing the Inside Bar Momentum Strategy up by 9 pips. I know it’s not a lot, but a win is a win!

The percentage win/loss depends on how position sizes are calculated.

See how the numbers added up for Q3 2020!