Not the best week for the SMA Crossover Pullback system since dollar and yen pairs were treading carefully before the FOMC and BOJ statements. 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 had a long position that went nowhere as price just cruised sideways in a tight range before eventually breaking lower and forming a new downward crossover.
As I was fretting about last week, the long order materialized at the top of the climb for Cable as price started continued to move lower at the start of the week. This position was closed on a new crossover then a stochastic pullback short signal was generated soon after.
AUD/USD had a new long position opened after the other week’s upward crossover but just like Cable, this happened too late and was closed on a new crossover. A short signal popped up on a pullback before the end of the week.
Lastly, EUR/JPY also failed to sustain its dive after forming a downward crossover and short signal from the previous week, causing the position to get closed at breakeven when the moving averages began oscillating.
Trade Summary:
| SMA Crossover Pullback Positions as of Sept. 16, 2016 | |||||||
|---|---|---|---|---|---|---|---|
| Pair | Position | Entry | SL | PT | Status | P/L (pips) | P/L (%) |
| GBP/USD | Short | 1.3340 | 1.3190 | 1.3640 | Closed | -90 | -0.60 |
| EUR/USD | Long | 1.1250 | 1.1100 | 1.1550 | Closed | -25 | -0.17 |
| EUR/JPY | Short | 115.15 | 116.65 | 112.15 | Closed | 0 | 0 |
| AUD/USD | Long | 0.7520 | 0.7370 | 0.7820 | Closed | -60 | -0.40 |
| GBP/USD | Short | 1.3250 | 1.3400 | 1.2950 | Open | – | – |
| AUD/USD | Short | 0.7515 | 0.7665 | 0.7215 | Open | – | – |
With that, the SMA Crossover Pullback system ended the week with a 175-pip loss or a 1.17% dent on the account. Range-bound action ahead of the top-tier central bank events for the month didn’t do the system any favors since it prevented strong trends from materializing.
I’m looking forward to tallying the numbers for the latest week and the upcoming ones, though, as the monetary policy statements seem to have set the tone for longer-term currency action. Keeping my robot fingers crossed that these will translate to big wins for this mech system!
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