Open positions from the previous week did not do the HLHB System any favors in the last couple of days.
Check out how I closed with some losses after three closed trades!
Before we get to the details, read all about my HLHB Trend Catcher System if this is your first time hearing about it!
Basically, I’m catching trends whenever the 5 EMA crosses above or below the 10 EMA.
A trade is only valid if RSI crosses above or below the 50.00 mark when the signal pops up. And in this version, I’m adding ADX>25 to weed out the fakeouts.
As for stops, I’ll continue to use a 150-pip trailing stop and a profit target of 400 pips. This might change in the future, but I’ll stick to this one for now.
Oh, and as mentioned before, I’m switching back to applying the HLHB system to the 1-hour time frame. Using 4-hour in Q1 2017 and Q2 2017 wasn’t bad, but I think using this trend-catcher on the 1-hour could yield better results.
EUR/USD
The euro benefited from an anti-dollar sentiment before some risk aversion eventually dragged EUR/USD to new intraweek lows. Yikes!
The HLHB had to close the previous week’s short position at a 51-pip loss when a long signal was validated. The open trade can only lose a max of 86 pips so that’s pretty promising.
GBP/USD
Like in EUR/USD, Cable also saw tight ranges until the second half of the week.
GBP/USD did not yield valid signals so the HLHB only had last week’s long trade to go with. Too bad it closed with a 50-pip loss when the pound hit the HLHB’s adjusted stop loss!
USD/JPY
The party stopped near the end of the week when USD/JPY yielded a valid short signal that forced the HLHB to close its long position for a nice 71-pip profit.
Here’s a summary of the open and closed trades from the last couple of days’ worth of trading:
