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Yikes! The weekend gap did a number on USD/JPY while Guppy managed to hit its PT on one of the signals from the Inside Bar Momentum Strategy. If this is the first time you’re reading about this, I suggest you take a look at the system rules and its Q1 performance.

In my previous updates, I’ve been running a test of the adjusted stop loss size (from the original 20% of the first candlestick to 40% of its length) on both USD/JPY and GBP/JPY but noticed more improvements in the former. However, this tweak wasn’t able to do much to save USD/JPY from hitting its stops in the past couple of signals.

USD/JPY 1-hour Forex Chart
USD/JPY 4-hour Forex Chart

There were a couple of inside bar formations that had triggered positions for USD/JPY and I zoomed in to the short-term time frames to check if the stops or targets had been hit.

usdjpy_ib.fw

GBP/JPY also had a couple of triggered positions for the week, with the first one hitting its stop and the second one reaching its profit target.

GBP/JPY 4-hour Forex Chart
GBP/JPY 4-hour Forex Chart

gbpjpy_ib.fw

My observation at this point is that, even with the original system rules, USD/JPY would’ve hit its stops anyway while Guppy probably wouldn’t have had enough leeway before reaching its profit target.

Contrary to my earlier thoughts that the tweaks are resulting to improvements only for USD/JPY, I’m starting to think that it could also lead to a better win ratio for Guppy in the long run. Then again, it might be too early to draw conclusions from just a few weeks’ worth of tests so I’ll keep running these changes in my next updates. Stay tuned!