Greetings, forex earthlings! Here’s our first glimpse on how the SMA Crossover Pullback system has performed at the start of this year. If this is the first time you’re hearing about this mechanical system, better take a look at the trading rules and risk management adjustments first.
Here’s how it all went down:
As I’ve shown y’all in last week’s update, GBP/USD had a short position open at 1.4920. Price made a quick pullback but eventually resumed its drop, hitting the target at 1.4620 to score a 2% win.
The long position on EUR/USD was closed early on a new crossover, which managed to limit the losses to just 10 pips. A new short signal was generated soon after, with the trailing stop able to lock in a few more pips.
Unfortunately for EUR/JPY, there were no new crossovers this time.
The long trade on AUD/USD also got stopped on on a new crossover, but another short signal materialized before the end of the week.
Here’s a summary of the positions that were closed and left open as of January 8:
|SMA Crossover Pullback Positions as of Jan. 8, 2016|
|Pair||Position||Entry||SL||PT||Status||P/L (pips)||P/L (%)|
All in all, the forex system was able to chalk up a total of 200 pips or a 1.33% gain on the account, which is a pretty good start for the year. I’m a bit worried that the AUD/USD short signal is once again taking place right at the end of the trend, which makes me consider setting a time limit for any pullback signals after a new crossover occurs.
What do you guys think? I’m enjoying all the feedback I’m getting on this mechanical system and I just wanna give a shoutout to those folks who’ve been working on an EA for this one. Keep it up!