HLHB Forex Trend-Catcher System Explained

I’ve been getting a lot of inquiries about the HLHB Trend-Catcher System, so I decided to give a bit of refresher on this forex system. Here are the deets!

What is it about?

If you’ve just tuned in to BabyPips.com, you should know that the HLHB System simply aims to catch short-term forex trends. It is patterned after the Amazing Crossover System that Robopip once backtested. In fact, it was one of his highest-scoring mechanical systems in 2014! The system can be applied to any pair, but since I’m into major pairs, I’m applying it to the 1-hour charts of EUR/USD and GBP/USD.

What are the chart settings needed?

EUR/USD 1-hour chart
GBP/USD 1-hour chart
5 EMA: blue line
10 EMA: red line
RSI (10) applied to the median price (HL/2)

Entry Rules

BUY when the 5 EMA crosses above the 10 EMA from underneath and the RSI crosses above the 50.0 mark from the bottom.

Sell when the 5 EMA crosses below the 10 EMA from the top and the RSI crosses below the 50.0 mark from the top.

Make sure that the RSI did cross 50.0 from the top or bottom and not just ranging tightly around the level.

Exit Rules

Use a 50-pip trailing stop and a 200-pip profit target. This increases the chances of the system riding longer trends.

Close the trade when a new signal materializes.

Close all trades by the end of the week.

There you have it, folks! Over the next few days I’ll be publishing samples of how the HLHB System works on both EUR/USD and GBP/USD forex trades. Let me know if you have any questions!

XOXO,

Huck

See also:

2014 HLHB Trend-Catcher Performance

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