A lack of trending action from the majors opened the HLHB to tons of fakeouts.
Luckily, two big wins kept this trend-catcher in the green.
Before I show you last week’s numbers, make sure to 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 sharp downswing, along with two new fakeouts, led to a net loss of 36 pips from EUR/USD for the week.
The HLHB has an open long trade on EUR/USD to start the week. I hope we see some euro strength so the HLHB can gain some pips!
GBP/USD
A valid signal near the start of the week meant that I had to close an open trade for a 130-pip profit.
I can’t celebrate much, though, because the new signal turned out to be a fakeout that was taken out as soon as GBP/USD dropped sharply on Tuesday. The HLHB lost 99 pips on that trade!
USD/JPY
The HLHB also validated a signal near the end of the week, which means that I had to close an open trade for a 209-pip win. The new trade can now only lose a max of 120 pips.
Here’s a summary of the open and closed trades from the last couple of days’ worth of trading:
