Another mixed week for the SMA Crossover Pullback system as Cable hit its stop loss while EUR/USD is locking in gains with its trailing stop.
Cable had a short position left open from the other week, but this one hit its full stop loss on the sharp rally that occurred before the new crossover took place.
A new long position was opened soon after, so I’m keeping my robot fingers crossed that this makes up for the previous loss.
EUR/USD had an upward crossover that was followed by a stochastic pullback signal to go long. Price has moved a little over 150 pips in the trade’s favor so the 150-pip trailing stop is already activated.
Lastly, EUR/JPY finally made a new crossover this week so I’m on the lookout for a stochastic pullback signal to short.
Here are the latest positions:
|Pair||Position||Entry||SL||PT||Status||P/L (pips)||P/L (%)|
With that, the SMA Crossover Pullback strategy ended up with a 150-pip loss or a 1.00% dent on the account, larger than the previous week’s loss. Not exactly the strong start I hoped for this Q3!
I’m not giving up on the idea that this forex strategy could still catch big wins later on and make up for the recent losses. At least that’s how the system fared in the first half of the year!
Although the drop in liquidity during summer months could make it more challenging for trends to gain traction, the prevailing market themes of monetary policy biases and resurfacing Brexit concerns could still push these pairs around.
To top it off, dollar weakness could stay in play for a while as market watchers keep doubting that the Trump administration could move forward with its fiscal reform plans. Weak U.S. data and the prospect of balance sheet unwinding could also weigh on rate hike expectations in the next few months.