It’s a bit of a mixed run for this strategy, as it caught another early exit on one pair but also has a risk-free trade going in for another.
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 bearish crossover in the earlier update, and it took a while before Stochastic reached the overbought zone then turned lower for a short signal.
The moving averages still seem to be keeping a safe distance, though, so I’m hoping this is just one really large correction in the middle of the selloff.
Cable had a long play open in the previous update, but it wasn’t really going so well as the moving averages were gearing up for a bearish crossover then.
The long position had to be closed for a loss when the crossover was completed, resulting in an 81-pip dent for the pair.
This was then followed by a Stochastic pullback signal to short, and this doesn’t seem to be going too well either. Bah!As for EUR/JPY, its short play from much earlier on is faring pretty well as the downtrend is still going. In fact, the price drop was enough to have the trailing stop activated, making this a risk-free play for the pair.
Here’s a look at the latest positions:
Trade Summary:
| Pair | Position | Entry | SL | PT | Status | Pips | % |
|---|---|---|---|---|---|---|---|
| GBP/USD | Long | 1.2500 | 1.2350 | 1.2800 | Closed | -81 | -0.54 |
| GBP/USD | Short | 1.2325 | 1.2475 | 1.2025 | Open | – | – |
| EUR/USD | Short | 1.0788 | 1.0938 | 1.0488 | Open | – | – |
| EUR/JPY | Short | 117.16 | 118.66 | 114.16 | Open | – | – |
Rough start for this quarter, huh?
Check out how this system fared in Q1 2020 and how it’s holding up to other mechanical systems in Forex Ninja’s weekly showcase!
