System Update: SMA Crossover Pullback (May 12 – 19)

It was another mixed run for this trend-following strategy as it caught a full win but also got one of its positions stopped out. Here’s how it all added up.

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 short position left open in the earlier update, and price gained a bit of downside momentum before moving mostly sideways.

The gap between the moving averages started to narrow, hinting at a new crossover, which fortunately occurred slightly lower than entry.

In short, this pair snagged an early exit but was able to bag some pips. Phew!

No new positions have been opened after the bullish crossover since Stochastic has yet to dip to the oversold region and turn back up.

Cable also had a short position left open in the previous update, and the pair enjoyed a lot of downside momentum afterward!

In fact, the selling pressure was so strong that GBP/USD was able to tumble all the way down to its full profit target.

That locks in a 300-pip or 2% gain on Cable. Ka-ching, ka-ching!

By the looks of it, the moving averages appear to be suggesting that the pair could head much further south as the gap between the indicators is still pretty wide.

As for EUR/JPY, its earlier short position didn’t get any bearish traction at all as price just kept climbing all the way up to its full stop loss.

A fresh long position was opened soon after, and this seems to be doing well as price popped sharply higher. The trailing stop is already activated on this one, so I’m not too worried.

Here’s a look at the latest positions:

Trade Summary:

SMA Crossover Pullback Positions as of May 19, 2020

Pair	Position	Entry	SL	PT	Status	Pips	%
GBP/USD	Short	1.2396	1.2546	1.2096	Closed	+300	+2.00
EUR/USD	Short	1.0840	1.0990	1.0540	Closed	+20	+0.13
EUR/JPY	Short	114.90	116.40	111.90	Closed	-150	-1.00
EUR/JPY	Long	115.50	114.00	118.50	Open	–	–

With that, the SMA Crossover Pullback System ended up with a 170-pip or 1.13% gain for the week. Not bad, eh?

I know it’s not enough to erase the earlier losses, but I’m just relieved that this forex strategy was finally able to chalk up a positive week this quarter!

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!