HLHB Weekly Update – August 13, 2012

HLHB Trend-Catcher

EUR/USD Hourly Chart

The HLHB Trend-Catcher system‘s gains were only limited last week because there were no big trends that materialized on EUR/USD. But I’m still pretty happy with my system’s performance because the RSI was able to filter a couple of fakeouts. Here’s a quick rundown of the signals that materialized:

1. Invalid signal since RSI did not cross 50.0.
2. Long at 1.2392. Closed due to new crossover at 1.2388. -4 pips.
3. Invalid signal since RSI did not cross 50.0.
4. Invalid signal since RSI did not cross 50.0.
5. Short at 1.2390. Closed due to new crossover at 1.2424. -34 pips.
6. Long at 1.2425. Closed due to new crossover at 1.2398. -27 pips.
7. Short at 1.2398. Trailing stop hit at 1.2377. +21 pips.
8. Invalid signal since RSI was not above 50.0.
9. Short at 1.2351. Trailing stop hit at 1.2291. +60 pips.
10. Long at 1.2314. Closed due to new crossover at 1.2275. -39 pips.

Total: -23 pips

EUR/USD Trade

EUR/USD Daily Chart

As for my EUR/USD trade, it’s currently up 89 pips. That may seem a lot, but I also have a wide 100-pip stop.

This means that I need to let it ride the downtrend further so that my reward-to-risk ratio is more than 1:1. I am trading the daily time frame, which means I’ll be holding on to the trade longer than usual.

I’d be lying if I told you that I’m contented with how my HLHB Trend-Catcher is doing though. I mean I’m happy with it, but I think I can tweak it more to make it even better.

I’m thinking about removing the 50-pip trailing stop for weekend trades like what I did last week. I’ll replace it with a regular 50-pip stop if the trade remains open over the weekend.

As I’ve said in my HLHB Q2 2012 review, all weekend trades that materialized during the quarter closed as winners. Also, the open trade that I pointed out in my last update could’ve hit my 200-pip profit target at 1.2396 had there been no trailing stop in place.

What do you think? Please lemme know what your thoughts are by voting in the poll below! Thank you!

XOXO,

Huck

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  • matrix

    I dont know, some up breez is coming thou

  • RobertoK

    The EUR/USD has made a swing low on the daily. Am focusing on long positions in the EUR/USD for the week. You did great with the entry, I had the same trade but took profits way too soon at only 45pips, I was expecting that swing low to form much earlier than it actually did.

    I’d be looking to move the stop to breakeven, Just a thought. I think we might see another rally today later in NY session

  • pete

    Hi Huck I reall like this stratagy and have been following it for a while thoug on 4hr I wonder if one other indicater (say williams%r) or some other might weed out the losers.As regard the stop,I suposewith a non trailing stop you dont get stoped out so much by bounceand once you get up a bit say 100 put atrailing on then so theres lots of leeway.what do you think?

  • alwjmonster

    hi huck, you may reconsider widen your trail stop maybe by 100?, in spite of extra gap fill during the weekend, but i think we must remain flexible towards the condition, like you can also use 50 trail stop when you expecting low volatility. or 100 trail stop when there’s big impact news on friday. putting trail stop over weekend is indeed very essential for me, just to helps us to limit our losses in case gap filled against our trades.