Just rounding up a few more signals on this mechanical strategy before I crunch the numbers for the previous quarter. Take a look!
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.
First up, here are the signals on USD/JPY:
Just the one signal before Q3 came to a close, and here’s how it turned out:
Unfortunately it wound up as a loss, with price getting triggered on a pop higher then losing ground on the dip that followed.
Here are the inside bar signals for GBP/JPY:
This one snagged a couple of signals, and zooming in to the short-term time frames shows if the entry and exit levels were hit.
With that, the Inside Bar Momentum Strategy still managed to catch a 12-pip gain for the week on both pairs, and the percentage gain depends on how position sizes were calculated.
And now for the Q3 2018 numbers! Note that I’m assuming 1% risk per position in crunching the percentage gains and losses. Here’s the tally for USD/JPY:
Ack! Not exactly the best of quarters, huh? This pair caught way fewer winning trades compared to losing ones, yielding a net 1.60% loss for the period even as its average win outpaced its average loss.Its maximum winning streak in % was also much larger than the average drawdown, but sadly the sheer amount of losing positions was enough to produce a negative run.
This is looking dismal compared to its performance in Q2 when it snagged 16.55% in gains and a pretty decent 52.78% win rate versus this quarter’s 39.47%.
As for Guppy, here’s how the past three months turned out:
Ha! Now that’s much better!
This pair had nearly twice as much winning trades than losing ones, and its larger average win vs. average loss also contributed to an impressive 13.75% gain for the quarter.
It also scored an awesome nine-trade winning streak, which yielded 10.88% in gains, more than enough to erase its maximum drawdown of 1.63% over three consecutive losses. All in all, its win rate stands at 64.71% for Q3, a few notches higher than the already impressive 62.96% in Q2.