December 28, 2021

Q4 2021 Review: Inside Bar Momentum Strategy 2.0

 This strategy had a stellar run in Q3, so the bar has been set pretty high for Q4.


Did it finish 2021 strong? Here are the numbers!


If this is the first time you’re reading about this 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 (from the original 20% of the first candlestick to 40% of its length) on both USD/JPY and GBP/JPY.


Note that I’m assuming 1% risk per position in crunching the percentage gains and losses.



This pair caught 23 valid inside bar signals for the period, winning 19 positions or 79.17% of it all.


That’s even better than its previous 79.17% win rate in Q3, but did it catch bigger wins?



Well, not exactly.

The pair was able to rack up 238 pips or a 20.54% gain, just shy of the earlier 257-pip or 23.94% win in Q3. Still not bad!


It had another impressive winning streak of 15 trades that bagged 17.62% in gains, erasing the 3.39% loss snagged during its longest losing streak of 3 trades.


Its average gain of 1.30% is also slightly larger than its average loss of 1.05%, which gives it a positive expectancy.




Guppy also scored 238 pips for the period but racked up only 10.46% in gains. 


This came from 28 valid signals, 17 of which or 70.38% turned out to be winners.

Its average win of 1.26% is much larger than its average loss of 1.09%, although it only had a pretty short maximum winning streak of four trades.


With that, the Inside Bar Momentum Strategy was able to end up with a 476-pip or 31% gain for Q4 2021.


That comes pretty close to its stellar 33.36% win in Q3, adding to the 16.96% gain in Q2 and 22.98% win in Q1.


That’s a grand total of 104.3% in winnings for the whole year!