A pretty tricky forex trading week for the HLHB System, as it got hit by tons of fakeouts 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 started the NFP week on a tight trading range, as the markets continued to process the impact of a Brexit vote. The only significant move happened on Tuesday during the London session when Mark Carney announced that the BOE would free up around 150B GBP worth of lending capacity for the banks. The pair then went back to a tight 50-pip range with the NFP report causing a bit of blip right before the week ended. Unfortunately, the gains from signals #5 and #12 were not enough to offset the fakeouts that the system validated throughout the week.
Much like in EUR/USD, the only major mover for Cable was the BOE’s decision to cut its “countercyclical buffer rate” from 0.50% to 0.0%. The central bank’s decision sent the pound tumbling across the board. Too bad that the HLHB System missed the good stuff! The system invalidated the signal, leaving no buffer against the four fakeouts that the pair saw during the week. Boo!
Not a good week for this trend-catcher, huh? Hopefully this week’s price action would yield better results. Keeping my fingers crossed!
P.S.: Remember to never risk more than 1% of a trading account on any single trade and to adjust position sizes accordingly. Create your own ideas and don’t follow what I do. Better yet, read the Risk Disclosure!