Thank the universe for trailing stops! A bunch of open positions from the SMA Crossover Pullback system were still able to catch some gains even in quick reversals last week. 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, EUR/USD still had an open short position prior to the ECB statement and as I expected, price jumped after the announcement. Fortunately, the position was closed on a new crossover before it even hit the full stop. Whew! After this upward crossover, a stochastic pullback signal followed to open a new long position.
GBP/USD had a new crossover early in the week then a stochastic pullback signal didn’t materialize until Thursday. I’m a bit worried that price is starting to turn lower again, though.
AUD/USD’s short position which was open for nearly three weeks already eventually hit its trailing stop before price reversed. A new crossover took place afterwards but a pullback signal hasn’t been completed yet.
Lastly, the long position on EUR/JPY also reached its trailing stop when price turned lower. A downward crossover was seen late in the week, immediately followed by a pullback signal to short.
Trade Summary:
| SMA Crossover Pullback Positions as of Sept. 9, 2016 | |||||||
|---|---|---|---|---|---|---|---|
| Pair | Position | Entry | SL | PT | Status | P/L (pips) | P/L (%) |
| AUD/USD | Short | .7690 | .7840 | .7390 | Closed | +50 | +0.33 |
| EUR/USD | Short | 1.1185 | 1.1335 | 1.0885 | Closed | -65 | -0.43 |
| EUR/JPY | Long | 114.00 | 112.50 | 117.00 | Open | +90 | +0.60 |
| GBP/USD | Short | 1.3340 | 1.3190 | 1.3640 | Open | – | – |
| EUR/USD | Long | 1.1250 | 1.1100 | 1.1550 | Open | – | – |
| EUR/JPY | Short | 115.15 | 116.65 | 112.15 | Open | – | – |
With that, the SMA Crossover Pullback system was able to squeeze out a 75-pip win or a 0.50% gain on the account, thanks to those risk management rules. The trailing stops on AUD/USD and EUR/JPY were hit while the new crossover rule trimmed losses for EUR/USD.
It looks like we’re in a bit of a range-bound environment for these pairs once more since traders are biting their nails ahead of the FOMC and BOJ decisions next week. I’ve got no robot nails to speak of so I guess I’ll just have to keep these metal fingers crossed that the current open positions would also fare well. Stay tuned for my updates! Here are some books if you want to get deeper into building systems & algorithms. BabyPips.com receives a small credit from any purchases through the Amazon links above to help support the free content and features of our site…enjoy!
