I’m seeing stronger moves on EUR/USD, GBP/USD, and EUR/JPY lately, so let’s see if this forex strategy was able to cash in on those.
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 short position left open from nearly a month ago and the trailing stop has been activated to lock in gains along the way. This stop was hit on a large pullback to the 1.2900 area.
A new crossover is forming so I’ll be on the lookout for a stochastic pullback signal to go long from here.
EUR/USD also had a short position left open from the other week but the pair moved mostly sideways and this had to be closed on a new crossover for a loss.
Fortunately, a stochastic pullback signal quickly materialized and allowed the system to catch a long position before that strong rally to the 1.2000 area. With this big move, the trailing stop is already in play and price is closing in on its full target. Robot fingers crossed!
Lastly, EUR/JPY’s short position also had to be closed at a loss when a new crossover formed. The pair is already showing some upside momentum but stochastic has yet to pull back to the oversold region and move back up before a long position is opened. Hopefully it’s not too late for this one!
Here are the latest positions:
Trade Summary:
| Pair | Position | Entry | SL | PT | Status | P/L (pips) | P/L (%) |
|---|---|---|---|---|---|---|---|
| GBP/USD | Short | 1.3045 | 1.3195 | 1.2745 | Closed | +120 | +0.80 |
| EUR/USD | Short | 1.1750 | 1.1900 | 1.1450 | Closed | -70 | -0.46 |
| EUR/JPY | Short | 129.00 | 130.50 | 126.00 | Closed | -75 | -0.50 |
| EUR/USD | Long | 1.1800 | 1.1650 | 1.2100 | Open | – | – |
With that, the SMA Crossover Pullback strategy ended up with a 25-pip loss or a 0.17% dent on the account, but I’ve got good hopes for the open EUR/USD long position which is within striking distance of its target.
I hope I didn’t jinx it like I did with Cable’s short position, which actually dipped 30 pips shy of its full 300-pip target before reversing the move and hitting the trailing stop.It looks like geopolitical risks did kick into high gear as I expected, but this didn’t turn out positive for the U.S. dollar since this currency is being bogged down by a lot of negative market factors like threats from North Korea, weak inflation, political chaos in the White House, and falling odds of another Fed rate hike later this year.
Still, I’ve got a good feeling that this system will be able to pull off a positive performance for the quarter or at least stay in the black. In case you missed it, here’s a review of the system’s Q1 2017 and Q2 2017 performance.
