Last week’s wide ranges did NOT do this trend-catcher favors in the last couple of days.
Luckily, a big win on USD/JPY limited the system’s losses.
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 HLHB had a total of three trades including last week’s long position. The open trade closed for a 15-pip profit but the mid-week fakeout cost the HLHB 45 pips.
The last long position is left open but it can only lose a maximum of 131 pips. I hope we see more one-directional moves in the next few days!
GBP/USD
Much like EUR/USD, Cable also traded in a range for most of the week.
Okay, it was more like a flat-ish downtrend but I think it can pass as a range. The HLHB validated three signals which, if you include last week’s short trade, yielded a 57-pip loss for the system. Boo!
USD/JPY
The HLHB caught a long signal just before USD/JPY popped higher. That means it was able to adjust its stops just before USD/JPY dipped to its weekly lows!
Here’s a summary of the open and closed trades from the last couple of days’ worth of trading:
