Greetings earthlings! I’ve just finished rounding up the numbers on this mechanical trading strategy for Q2 2018, so take a look!
If this is the first time you’re reading about the Inside Bar Momentum Strategy, I suggest you take a look at the system rules first.
ICYMI, I also applied stop loss adjustments to this quarter’s trades. I’m using 40% of the first candlestick’s length as basis for the stops compared to the original 20%.
And I know I haven’t really covered the position sizing rules for this system just yet but, for simplicity’s sake, I decided to assume 1% risk per trade in order to help me analyze performance.
Since I’m running this strategy on a per pair basis, I crunched the numbers for USD/JPY first:
This pair had opened roughly the same number of trades as in Q1 but had a slightly lower win rate at 52.78% compared to 57.14%.
BUT! It’s total P/L in % came in at 16.55% versus the earlier 13.66% thanks to a couple of impressive winning streaks, with one chalking up a 7.83% gain and another logging in an even higher 8.83% win – both larger than Q1’s max winning streak of 7.32%.
This was more than enough to make up for its maximum drawdown of -4.59%, which is also way larger than the previous quarter’s -1.45% figure.
This pair caught fewer signals in Q2 compared to Q1 2018 and also scored fewer pips at 210 versus 370. However, it managed to snag a higher P/L in % at 13.75% versus the earlier 9.68% mostly due to tighter stops per position.Also, it’s worth noting that the win rate is much higher at 62.96% this time compared to 56.25% in the first quarter. It didn’t really score a stellar eight-trade winning streak like last time but had several sets of three-trade consecutive wins, so that’s not bad at all.
All in all, these numbers add up to 23.43% in gains for Guppy and 30.21% for USD/JPY so far this year. This robot ain’t complainin’!