It was a mixed bag for the SMA Crossover Pullback forex mechanical system last week, as it took a huge hit from EUR/JPY. If you’re wondering what I’m talking about, make sure you look at the trading rules and risk management adjustments first.
In my update last week, GBP/USD had a long position open with the trailing stop activated. This stop was eventually hit on a large pullback to 1.4590.
EUR/USD continued to cruise lower after hitting its 300-pip PT the other week, but a new crossover formed on Friday to indicate a potential reversal. No stochastic pullback signals have popped up yet, though.
EUR/JPY was its usual choppy self as it made an upward crossover and long pullback entry signal, only to be stopped out just as quickly. A new crossover formed late in the week but there has been no pullback signal yet.
Lastly, AUD/USD finally made a new crossover after weeks of trending lower without looking back. Keeping my robot fingers crossed that this would result in another big win!
Here’s a summary of the positions as of June 3, 2016:
| SMA Crossover Pullback Positions as of June 3, 2016 | |||||||
|---|---|---|---|---|---|---|---|
| Pair | Position | Entry | SL | PT | Status | P/L (pips) | P/L (%) |
| GBP/USD | Long | 1.4665 | 1.4665 | 1.4965 | Closed | +5 | +0.03 |
| EUR/JPY | Short | 123.90 | 125.40 | 120.90 | Closed | -150 | -1.00 |
| GBP/USD | Short | 1.4470 | 1.4620 | 1.4170 | Open | – | – |
| AUD/USD | Long | .7225 | .7075 | .7525 | Open | – | – |
All in all, the system ended with a 145-pip loss or a 0.97% dent on the account, with the choppiness on EUR/JPY mostly to blame. I’m thinking of making adjustments on the moving average parameters on this pair to generate fewer crossovers and signals, possibly resulting in a better win rate. Or should I just remove EUR/JPY from this list altogether? Care to share your thoughts?
