NFP week trading didn’t work out well for the HLHB Trend-Catcher System, as forex traders couldn’t seem to settle on a direction ahead of the monster report.
Read all about my HLHB Trend Catcher System if this is your first time hearing about it!
With the ECB monetary policy decision AND the NFP report scheduled in the same week, it’s no surprise that forex traders were wary of committing to a direction ahead of the major events. The pair’s biggest move happened at the ECB’s press conference, where Mario Draghi hinted at more stimulus. By the end of the week the system was down by 88 pips on the pair.
Unlike in EUR/USD, Cable traders were not shy of committing to a trend. In fact, GBP/USD was almost on a steady downtrend for most of the week as the U.K. printed weaker-than-expected PMI reports and highlighted the BOE and Fed’s policy direction. Unfortunately for the system, the slow but sure downtrend still produced a few fakeouts that the RSI filter wasn’t able to filter. By the end of the week the system lost 68 pips from Cable. Boo!
Will last week’s price action print better results for this trend-catcher system? I got my fingers crossed!