I’ve crunched the numbers on the Inside Bar Momentum Strategy 2.0 for Q2 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:
For this pair, the system still wound up with a 3.51% gain, nowhere close to Q2’s 15.30% win but pretty decent nonetheless. It had a weaker win rate at 46.67% also, but its average win managed to stay higher than the average loss at 1.31% versus 0.98%.
Its maximum winning streak of five trades also churned out a slightly lower gain of 5.86% versus the maximum drawdown of 5.97% at six consecutive losing trades.
Here’s how Guppy turned out:
GBP/JPY was able to cop a total of 617 pips and a 19.72% gain on the account, even higher than the already impressive 17.18% win in Q2. That’s all thanks to 23 winning trades and a 65.71% win rate, plus a larger average win vs. average loss.
This pair’s longest winning streak was also jaw-dropping at eleven trades and a total of 15.67% in gains. Its max drawdown of 3.98% for four consecutive losses doesn’t seem too bad in comparison.