Death by weekend gap! Thanks to EUR/USD’s post-French elections gap, the HLHB System ended up with more losses than was “locked in.” Good thing it worked out for USD/JPY, though!
Read all about my HLHB Trend Catcher System if this is your first time hearing about it!
As I’ve mentioned before, I’ve decided to stick to my second tweak in my forward tests for the next couple of weeks. Basically, I’m adding the ADX indicator as a filter on top of the RSI and applying all of them on the 4-hour time frame instead of last year’s 1-hour charts.
Read: HLHB System’s Q1 2017 Results
Here are the results from the last week of April:
EUR/USD
GBP/USD
USD/JPY
It was a chill week for the RSI for all pairs, so there were no new valid HLHB signals throughout the week.
But, as I mentioned in last week’s update, the system still had two open trades: a EUR/USD short and a USD/JPY long.
My EUR/USD trade got hit by the weekend gap that came after France’s first round of Presidential elections. As you know, a Macron lead led to a EUR rally and surge in risk appetite that was seen across the board.
Luckily, the gap worked in USD/JPY’s favor. That’s right, our open trade from the previous week has now locked in 150 pips!
Overall, not a bad week for the HLHB System. As noted in the backtests, this particular tweak does well in filtering out fakeouts, but also tends to miss some pretty strong move (see GBP/USD’s third signal).
That’s it for my HLHB update for now! Let me know if you have any questions on the system and on the signals above!
P.S.: Remember to never risk more than 1% of a trading account on any single trade and to adjust position sizes accordingly. Create your own ideas and don’t follow what I do. Better yet, read the Risk Disclosure!
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.