It’s another winning week for the trend-catcher!
Though the HLHB caught some fakeouts, a couple of solid wins put the system in the green this week.
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
Fortunately for the HLHB, the fake (but valid) sell signal was cut short by a long trade that caught most of the euro’s upswing in the second half of the week.
All things considered, the HLHB was able to net 166 pips from EUR/USD. It’s now nursing a long trade that can only lose a max of 55 pips.
GBP/USD
Unlike in EUR/USD, the HLHB only validated a signal that was against GBP/USD’s overall uptrend. Heck, the system lost 125 pips on the trade!
It’s a good thing that an open position from the previous week also contributed an additional 68 pips or the 125-pip loss from this week’s fresh signal would’ve really hurt.
USD/JPY
The HLHB also only validated short signals from all the chaos. The signals kinda worked, though, because the HLHB is up by a net of 31 pips from closing two new trades. Not bad!
Here’s a summary of the open and closed trades from this week’s trading:
