I’ve crunched the numbers on the Inside Bar Momentum Strategy 2.0 for Q1 2019. Did this mech system end up positive overall?
If this is the first time you’re reading about this strategy, I suggest you take a look at the system rules before reading on.
Also, this version makes use of an adjusted stop loss size (from the original 20% of the first candlestick to 40% of its length) on both USD/JPY and GBP/JPY.
Note that I’m assuming 1% risk per position in crunching the percentage gains and losses. Here’s the tally for USD/JPY:
Surprisingly, the system still wound up with an impressive 3.20% gain despite the 33-pip total loss. It was a slightly even mix of winning and losing trades, but the difference was that the average win in % was much larger than the average loss.
Its maximum winning streak of three trades also churned out a much larger win of 4.26% compared to the max drawdown in its longest losing streak at 2.89%.
Here’s how Guppy turned out:
GBP/JPY was able to cop a total of 407 pips and a 17.78% gain on the account. That’s all thanks to 20 winning trades and a 68.97% win rate, plus a larger average win vs. average loss.
This pair’s longest winning streak was also particularly impressive at six trades and a total of 7.11% in gains. Its max drawdown of 1.96% for back-to-back losses doesn’t seem too bad in comparison.