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This mechanical system was able to catch a handful of signals for the week, but it only scored one win.

Did it still 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 had a couple of inside bar patterns that had their entries triggered.

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

The first one was a long position which snagged its stop before bullish momentum picked up.

The second one was a short play that fared much better, but the gains were not enough to make up for the earlier loss.

Here’s how it turned out:

Now here’s what went on with GBP/JPY:

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

This pair also had a couple of valid inside bar signals for the week.

The first one was a short position that enjoyed some downside momentum, but it wasn’t enough to take price all the way down to the profit target.

The second signal is a long position that’s still open and in the black for now.

Here’s how it’s looking:

With that, the Inside Bar Momentum Strategy is back in the negative zone with a 7-pip loss on USD/JPY  and a 44-pip dent on GBP/JPY, amounting to a total of 51 pips in losses for the week.

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

See how the numbers added up for Q4 2020!