One pair fared way better than the other in Q2 2021, thanks to stronger momentum.
Did this strategy beat its stellar performance in the previous period?
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:
This pair caught 30 valid inside bar signals for the period, winning only 12 positions and losing on 18 plays.This added up to a total quarterly loss of 23 pips or 0.68% at a not-so-impressive 40% win rate.
That’s nowhere close to its solid 16.49% win for Q1 2021 at a 72.73% win rate!
Its losing streak of four trades was also twice as long as its longest winning streak of back-to-back gains, although it’s worth noting that the average win was still larger than the average loss.
If only it chalked up more wins, though!
Now here’s how GBP/JPY turned out:
Guppy racked up 23 trades for the quarter, scoring a total of 351 pips or 17.64% in gains!Now that’s much better than USD/JPY’s run or its Q1 2021 profit of 6.49%.
Its average win of 1.80% is much larger than the 0.88% average loss, and its 69.57% win rate gives it a pretty impressive expectancy for the period.
Even more impressive is its seven-trade winning streak in the last week of April to the first week of May, scoring 10.17% then.
With that, the Inside Bar Momentum Strategy was able to end up with a 328-pip or 16.96% gain for Q2 2021, lower compared to its Q1 winnings but still pretty good!