Momentum picked up for both USD/JPY and GBP/JPY in the past week, but did this strategy catch valid plays and some wins?
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 had three valid signals for the week.
The first one was a short play in the middle of a selloff that was strong enough to reach the profit target.
The next signal was a bullish one as the trend shifted. Unfortunately, the stop was a wee bit tight that it got triggered on a quick pullback.The last signal made up for this small loss, as the position was able to stay open long enough to hit the full profit target.
USD/JPY was able to scrape by with a 10-pip overall gain:
GBP/JPY also saw strong momentum in both directions throughout the week, forming several inside bar patterns but only catching two valid plays.
The first signal was a short position that was able to ride on the bearish momentum all the way to its full PT.
The next one was a long position that also took advantage of the ongoing trend, hitting its target and scoring back-to-back wins for the pair. Woot woot!Here’s how it all turned out:
Guppy was able to make up for its tiny loss last week (and more!) by snagging 92 pips this time.
With that, the Inside Bar Momentum Strategy 2.0 closed out with a nice 102-pip gain for the week.
The percentage win/loss depends on how position sizes are calculated.
ICYMI, see how the numbers added up for Q1 2021.