It took a while but I’ve finally finished crunching the numbers on the Inside Bar Momentum Strategy 2.0 for Q3 2020. 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.
Note that I’m assuming 1% risk per position in crunching the percentage gains and losses.
Here’s the tally for USD/JPY:
Its win rate was also notably lower at 48.39% versus Q2’s 61.54% but its average win improved to 1.42% from the earlier 1.30%. The average loss is still at 1.00% since most of the losing plays hit the full stop losses.
The maximum winning streak of 7.21% in mid-July is still pretty impressive, although most of these gains were erased by a six-trade losing streak in late August.
Here’s how GBP/JPY turned out:
Ack, it looks like a weaker run for this pair!
Guppy was able to bag a total of 74 pips or 1.61%, which is a decent gain but peanuts in comparison to the previous period’s 482 pips or 20.81% in winnings.
Even though it scored fewer wins than losses at a win rate of 44.83%, it’s worth noting that the average win of 1.34% is larger than the average loss of 0.99%.
Still, its big gains over a three-trade winning streak were lost to a five-trade losing streak that snagged a max drawdown of 5.25%.
Think this strategy can keep up its impressive performance for yet another quarter? Better stay tuned to my next system blog posts to find out!