Saved by a big win!
Thanks to one big winning trade, the HLHB ended the week in the green despite being faked out one or two times in the last few days.
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
A fakeout on Tuesday led to the closure of a profitable open position from the previous weeks AND a 31-pip loss when the HLHB validated another short trade on Thursday.
The HLHB is now nursing a short trade with its losses adjusted to a maximum of 32 pips. Not bad, I think.
GBP/USD
Unlike in EUR/USD, Cable saw a (super) slow and steady climb from Monday to Thursday.
Unlike in EUR/USD, though, the HLHB didn’t validate any of the crossover signals even when GBP/USD saw a sharp decline on Friday. Next!
USD/JPY
It also doesn’t help that the HLHB validated another short signal near the end of the week.
Maybe we’ll actually see some dollar selling this time? My fingers are crossed because USD/JPY hasn’t seen enough downside pressure for the HLHB to adjust its stop losses yet!
Here’s a summary of the open and closed trades from this week’s trading:
