The SMA Crossover Pullback forex system was off to a bumpy start this month and it still appears to be shaky so far. If you’re wondering what I’m talking about, make sure you look at the trading rules and risk management adjustments first. Oh, and I’ve got the compiled results for Q1 2016, too!
With volatility usually getting turned down a few notches for the second quarter of the year, it’s understandable why this trend-following system is struggling. EUR/JPY had a long position open but this got stopped out even before a new crossover was seen. There have been no pullback signals for this one yet, though.
AUD/USD also had an upward crossover and a long pullback signal, but this position had to be closed when a new crossover formed. Soon after, a short pullback signal was generated.
As for EUR/USD, its long position from the other week is still open but seems to be going nowhere.
GBP/USD had a new downward crossover but there have been no pullback signals yet.
Here’s a summary of the positions as of April 8, 2016:
| SMA Crossover Pullback Positions as of Apr. 8, 2016 | |||||||
|---|---|---|---|---|---|---|---|
| Pair | Position | Entry | SL | PT | Status | P/L (pips) | P/L (%) |
| EUR/JPY | Long | 127.10 | 125.60 | 130.10 | Closed | -150 | -1.00 |
| AUD/USD | Long | .7650 | .7500 | .7950 | Closed | -15 | -0.10 |
| EUR/USD | Long | 1.1325 | 1.1175 | 1.1625 | Open | – | – |
| AUD/USD | Short | .7550 | .7700 | .7250 | Open | – | – |
With that, the system ended up with a 165-pip loss or a 1.10% dent on the account. Not so good so far!
Looking back to previous results from April and May last year shows that choppiness did play a factor in yielding a few small losses, but a couple of big wins still managed to keep the system profitable then. I’m taking this as a sign that the system might still be worth playing for the rest of Q2, keeping my robot fingers crossed that it’ll score some winners soon. Stay tuned for my updates!