HLHB System Update (May 11 – 15, 2015)

A pretty interesting forex trading week for the HLHB System, as it gained pips from both EUR/USD and GBP/USD.

Read all about my HLHB Trend Catcher System if this is your first time hearing about it!

EUR/USD

EUR/USD 1-Hour Forex Chart

EUR/USD 1-Hour Forex Chart

EUR/USD was on a somewhat steady uptrend for most of the week, which should have been good for this trend-catcher system. Unfortunately for the HLHB, the gains of the first signal was cut short by its 50-pip trailing stop. In fact, I was forced to close the trade before the uptrend really found its momentum! it’s still all good though, as the system was able to gain a net of 49 pips by the end of the week.

# Signal Open Close Pips Notes
1 Buy 1.1162 1.1229 67 Adjusted stop loss hit
2 Sell 1.1216 1.1216 0 There was no crossover
3 Buy 1.1236 1.1236 0 There was no crossover
4 Sell 1.1224 1.1224 0 There was no crossover
5 Buy 1.1307 1.1352 45 Adjusted stop loss hit
6 Sell 1.1368 1.1409 -41 New crossover
7 Buy 1.1409 1.1409 0 There was no crossover
8 Sell 1.1383 1.1415 -32 New crossover
9 Buy 1.1415 1.1415 0 There was no crossover
10 Sell 1.1385 1.1385 0 There was no crossover
11 Buy 1.1438 1.1448 10 End-of-week trade
TOTAL 49

GBP/USD

GBP/USD HLHB System Forex Chart

GBP/USD HLHB System Forex Chart

The HLHB System had a little bit more luck with GBP/USD than with EUR/USD this week. The biggest win came from signal #2, which was validated just before the pair took off and made its biggest intraweek trend. Signal #6 also contributed to the wins and helped counter the losses from signal #14. By the end of the week the system had a net total of 132 pips from Cable. Woot!

# Signal Open Close Pips Notes
1 Sell 1.5437 1.5437 0 There was no crossover
2 Buy 1.5447 1.5558 111 New crossover
3 Sell 1.5558 1.5558 0 There was no crossover
4 Buy 1.5634 1.5634 0 There was no crossover
5 Sell 1.5653 1.5653 0 There was no crossover
6 Buy 1.5698 1.5765 67 Adjusted stop loss hit
7 Sell 1.5758 1.5758 0 There was no crossover
8 Buy 1.5775 1.5775 0 There was no crossover
9 Sell 1.5767 1.5767 0 There was no crossover
10 Buy 1.5772 1.5772 0 There was no crossover
11 Sell 1.5766 1.5766 0 There was no crossover
12 Buy 1.5778 1.5778 0 There was no crossover
13 Sell 1.5759 1.5752 7 Adjusted stop loss hit
14 Buy 1.5789 1.5736 -53 New crossover
15 Sell 1.5736 1.5736 0 End-of-week trade
TOTAL 132

What do you think? Is a 50-pip initial and trailing stop loss too tight for a trend-catching system on the 1-hour time frame? Your thoughts would be most welcome!

XOXO,

Huck

See also:

2014 HLHB Trend-Catcher Performance

Follow me on MeetPips.com

Follow me on Twitter

Like my page on Facebook

  • Have you thought about having a trailing stop relative to the market volatility at the time of making an entry? Since you are inclined to the mechanical trading – many traders use volatility indicators such as ATR to detect the volatility and possible stop-losses.
    Did you try to back-test your system trough the last two years with different settings (like 60 or 70 pips)?

  • Hasmid Yarak

    When I place stop loss, its because I’m comfortable about losing at a certain amout. i.e 50 pips. If I had it my way, i rather not put s/l, I’ll exit when the indicators shows to get out but will regret if it gets to 200pips.
    Putting SL in a way is to get out of the an unfavourable market as fast as possible. The no. of pips does not matter, its what your comfortable with.
    -hasmidyarak