This strategy was off to a slow start as it caught only one valid signal for the week. Did it turn out profitable at least?
USD/JPY had a few inside bar patterns early in the week, but only one managed to have its entry triggered.Fortunately this one turned out well, as the bullish signal was almost immediately followed by a strong pop higher.
However, since the main bar was relatively small, the position had a pretty tight profit target and didn’t stay in the rally for too long.
Still, USD/JPY was able to bag 19 pips for the week:
Now here’s what went on with GBP/JPY:This pair also formed several inside bar patterns throughout the week. See if you can spot them!
Unfortunately, none of those candlestick formations had entries triggered based on the rules of this mechanical system.
With that, the Inside Bar Momentum Strategy managed to kick off the year with a meager 19-pip win. The percentage win/loss depends on how position sizes are calculated.
See how the numbers added up for Q4 2020!