After a pretty solid start to the quarter last week, was this strategy able to keep up with its good run?
If this is the first time you’re reading about this forex strategy, I suggest you take a look at the system rules before reading on.
Also, this version makes use of an adjusted stop loss size on both USD/JPY and GBP/JPY.
The size of the stop loss was adjusted from the original 20% of the first candlestick to 40% of its length.
USD/JPY was enjoying bearish momentum for the most part of the week, but it caught only one valid short signal.
Unfortunately, USD/JPY came up 4 pips shy of its PT, pulling up to snag the stop loss before eventually seeing more bearish momentum.
With that, the pair lost 21 pips for the week:
Now here’s what went on with GBP/JPY:
This pair moved lower during the first few days of the week then consolidated for the rest.
Still, GBP/JPY was able to generate two valid short signals.The first one came up short of hitting its profit target before popping back up to hit the stop instead.
Fortunately the next short play was able to reach its profit target, although the gains weren’t enough to make up for the losses.
Here’s how it all turned out:
With that, the Inside Bar Momentum Strategy lost a couple of pips on Guppy, winding up with a 23-pip dent for the week.
The percentage win/loss depends on how position sizes are calculated.
See how the numbers added up for Q4 2020!