October 12, 2021

System Update: SMA Crossover Pullback (Oct. 5 – 12)

 It looks like this system is off to a shaky start for this quarter, as it snagged another early exit.

Here’s how it’s looking lately.

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 is getting pretty close to scoring a full win, as price dipped within 20 pips of its profit target.

The pair enjoyed another wave lower after its recent pullback, but it looks like price is consolidating at the moment.

Even though EUR/USD is guaranteed a win with its trailing stop locking in pips along the way, I’m still hoping it would drop all the way down to the PT soon.

GBP/USD hit its trailing stop in the earlier update before a fresh bullish crossover popped up.

This was followed by a Stochastic pullback signal to go long around the middle of the week.

This position is still open for now, but it looks like bullish momentum is slowing after that brief rally. Yikes!

Meanwhile, EUR/JPY also scored some pips in the earlier update, but it looks like it erased those gains this time.

The pair had a short position opened early in the week, yet price did not gain any bearish traction at all!

Instead, EUR/JPY just kept climbing until a new crossover triggered an early exit just a few pips shy of its stop loss.

Here’s a look at the latest positions:

SMA Crossover Pullback Positions as of Oct. 12, 2021


EUR/USD Short 1.1813 1.1963 1.1513 Open

GBP/USD Long 1.3600 1.3450 1.3900 Open

EUR/JPY Short 129.33 130.83 126.33 Closed -131 -0.87

With that, the SMA Crossover Pullback System closed out with a 131-pip or 0.87% loss, as EUR/JPY chalked up another big dent just like the previous week.

I just hope the current short play on EUR/USD will be enough to make up for this loss!

ICYMI, here’s how this strategy fared in Q3 2021.