I’m seeing more choppy price action on the dollar pairs lately so it has been a bit of a struggle for the SMA Crossover Pullback mechanical system. If you’re wondering what I’m talking about, make sure you look at the trading rules and risk management adjustments first.
After hitting its trailing stop on a short position last week, EUR/USD looked ready to form a new crossover. However, the pair and the 100 SMA resumed its move lower and failed to generate new signals for the week.
Cable is still in Chopsville so the previous short position had to be closed early on a new crossover with a small loss. Another pullback signal materialized but it looks like it might get chopped up as well. Bah!
Lastly, EUR/JPY followed through with the previous week’s downward crossover and showed a stochastic pullback short signal. A bit of bearish momentum was seen but it wasn’t enough to activate the trailing stop before this pullback occurred.
Here are the latest positions:
Trade Summary:
| SMA Crossover Pullback Positions as of Mar. 1, 2017 | |||||||
|---|---|---|---|---|---|---|---|
| Pair | Position | Entry | SL | PT | Status | P/L (pips) | P/L (%) |
| GBP/USD | Short | 1.2495 | 1.2645 | 1.2195 | Closed | -65 | -0.43 |
| GBP/USD | Long | 1.2430 | 1.2280 | 1.2730 | Open | – | – |
| EUR/JPY | Short | 119.65 | 121.15 | 116.65 | Open | – | – |
With that, the SMA Crossover Pullback System ended up with a 65-pip loss or a 0.43% dent on the account for the past few days. I’m not feeling all that confident about the open positions on GBP/USD and EUR/JPY, but I’m still gonna keep my robot fingers crossed that these can at least catch some pips even on early exit conditions.
So far, though, the mechanical system has been in the black for the first two months of 2017 and I’m positive that it can cap off the quarter strong and maybe even beat its Q4 performance. What do you guys think?