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This mechanical trading strategy had more than its usual share of valid signals opened on EUR/JPY. But that’s not always a good thing, and here’s why.

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.

EUR/USD had a new bearish crossover by the end of the previous update and this was soon followed by a stochastic pullback signal to short. However, price doesn’t seem to be making much downside momentum and a new crossover exit appears to be looming.

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

Cable hit its trailing stop to snag some pips in the previous update and came close to making a bullish crossover. However, the bearish action simply resumed, so there are no new signals for now.

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

EUR/JPY, well, saying that price action is a mess would be an understatement. A lot of valid signals were generated even as price moved sideways, leading to a bunch of early exits on new crossovers.

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

Take a look at how it all turned out!

Trade Summary:

SMA Crossover Pullback Positions as of December 4, 2018
Pair Position Entry SL PT Status Pips %
EUR/JPY Short 128.70 130.20 125.70 Closed +19 +0.13
EUR/JPY Long 128.57 127.07 131.57 Closed -17 -0.11
EUR/JPY Short 129.01 130.51 126.01 Closed -29 -0.19
EUR/JPY Long 129.26 127.76 132.26 Open
EUR/USD Short 1.1376 1.1526 1.1676 Open

Ugh! With that, the SMA Crossover Pullback System wound up with a 27-pip loss or a 0.17% dent on the account. So much for wishing this strategy could get out of its funk and make a strong comeback from previous large losses.

In the meantime, check out how this mechanical system fared for Q3 2018 and how other strategies are faring in Forex Ninja’s Systems Showcase.