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Thank goodness for trailing stops that managed to lock in gains even with those sudden reversals! Take a look at the latest positions to see what I’m talking about.

But if this is the first time you’re reading about the SMA Crossover Pullback system, make sure you look at the trading rules and risk management adjustments first.

Cable had a long position left open from the previous week and it showed enough bullish momentum to get the trailing stop activated. When the BOE decision came along, price made a sharp drop and caused the position to get closed early.

A new downward crossover took place and this was followed by a stochastic pullback signal to short.

GBP/USD 1-hour Forex Chart
GBP/USD 1-hour Forex Chart

EUR/USD kept going with its climb and failed to make any new crossovers for yet another week. However, the rally seems to be slowing and a downward crossover also seems to be in the cards.

EUR/USD 1-hour Forex Chart
EUR/USD 1-hour Forex Chart

Lastly, EUR/JPY also hit its trailing stop on the long position from the other week as price took a sharp tumble on risk-off vibes from North Korea’s missile strike threats.

EUR/JPY 1-hour Forex Chart
EUR/JPY 1-hour Forex Chart

Here are the latest positions:

Trade Summary:

SMA Crossover Pullback Positions as of Aug. 9, 2017
Pair Position Entry SL PT Status P/L  (pips) P/L  (%)
GBP/USD Long 1.3075 1.2925 1.3375 Closed +41 +0.27
EUR/JPY Long 129.15 127.65 132.15 Closed +75 +0.50
GBP/USD Short 1.3045 1.3195 1.2745 Open

Not bad! The SMA Crossover Pullback strategy ended up a 116-pip win or a 0.77% gain on the account after last week’s pause. The trailing stops were hit as Cable and EUR/JPY started showing early signs of a reversal, allowing those positions to catch some gains instead of giving ’em all back.

So far so good for this quarter as the strategy is still in the black even after a shaky performance in July. I can’t help but wish it could score a big win, though, once trends gain more traction. For now, it looks like risk sentiment is being the main driver as the market attention is veering away from monetary policy biases.

 

In case you missed it, here’s a review of the system’s Q1 2017 and Q2 2017 performance.