HLHB Trend-Catcher System Update (August 8 – 12, 2016)

Fakeouts, fakeouts everywhere! Thanks to tight forex trading conditions last week, the HLHB Trend-Catcher System ended up with small losses on EUR/USD and GBP/USD. Boo!

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

With no major report from the euro zone and only a retail sales release from Uncle Sam, it’s not surprising that EUR/USD was stuck in a range all week. The HLHB System popped up 11 signals but only 7 of them were valid and only 1 of them (signal #7) churned out positive pips. By the end of the week this trend-catcher was down by a net of 25 pips from EUR/USD. Not too bad, I think.

EU

GBP/USD

GBP/USD 1-hour Forex Chart

GBP/USD 1-hour Forex Chart

The HLHB System had a teeny-tiny bit more luck with Cable than with EUR/USD. The pair eked out five valid signals throughout the week with only two of them turning out to be fakeouts. By the end of the week the HLHB limited its losses to a net 1 pip from GBP/USD. Phew!

GU

Will tight trading conditions continue to define EUR/USD and GBP/USD’s price action for the rest of the month? I sure hope not! Fingers crossed for better, more trend-friendly prices this week!

XOXO,

Huck

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!

See also:

2014 HLHB Trend-Catcher Performance

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  • James

    Hello,

    Reading these Mechanical set-ups I have noticed you have changed some of you’re system parameters from:

    4hr / EMA(10/20), S. Stoch(14,3,3)

    to the following:

    1hr / EMA(5,10), RSI(10)

    Is their any significant reason for this I understand over time that systems evolve, but surely using the EMA(5,10) you are going to be more prone to fake out’s and noise even on the 1hr chart.

    Also a couple of questions:
    Would something like a 8 & 20 EMA work ?
    Would the MACD not work better if you are looking at a couple of hours/days in a trade ?

    • Hello and thanks for your questions, James!

      I switched from H4 to H1 a while back to see if I could get more signals from the system. Back then I noticed that I wasn’t able to take advantage of small weekly trends because of the time frame. So far switching to a lower time frame hasn’t been all that bad.

      As for using MACD, I do remember contemplating on using it. I considered backtesting it but I guess I never got around to it. Do you recommend any MACD settings for this system? 🙂

      • James

        Well you could use the default one : 12, 26, 9 and then their’s 5,34,21

        What about you’re moving averages are they to close ? (5,10) ?

        • The default setting sounds good. I might try it on my next backtesting sessions. I’m pretty happy with my SMA settings for now. They bring tons of fakeouts but they also usually get the biggest movers.

  • Heya, Darrell!

    Here’s the latest version of the Huck Loves Her Bucks (HLHB) Trend-Catching System. Let me know if you have any questions!

    http://www.babypips.com/blogs/loonie-adventures/forex-hlhb-system-explained.html