Three wins out of four trades for the Inside Bar Momentum Strategy 2.0 in the past few days! Check out the latest positions right here.
But 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 tweaked 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.
The system generated three inside bar signals for USD/JPY in the past few days:
Zooming in to the short-term time frames helped me check if the signals were triggered and if any stops or targets were hit.
Phew! This one yielded a 34-pip win for the pair and the percentage gain depends on how position sizes were calculated.
And here are the inside bar signals for GBP/JPY:
Guppy formed a couple more inside bar patterns than highlighted on the chart above, but I’ve only marked the ones that got triggered on their entries.
The first one had to be closed early when a new inside bar pattern soon followed. Fortunately, the long position generated by that next signal reached its full profit target. But unfortunately, the next valid inside bar signal yielded a loss as it hit the full stop loss during the BOE announcement.All in all, the system caught 69 pips for the period for both pairs, which ain’t so bad. My earthling friends tell me that it’s been tough to trade dollar and yen pairs even on a discretionary basis these days since the market environment has been more dynamic than usual.
Take this week, for instance. Dollar demand has kicked higher as tax reform has been back in the spotlight, leading the Japanese currency to bow out for the time being. However, it might only be a matter of time before North Korean jitters dominate the headlines once more and flip the entire market picture again.
In any case, I’m still hopeful that the system can knock out a strong finish for this month and the third quarter. ICYMI, check out the system’s Q2 2017 performance.