HLHB Weekly Update – August 20, 2012

HLHB Trend-Catcher

EUR/USD Hourly Chart

There were a lot of fakeouts last week, but thankfully, the HLHB Trend-Catcher still ended up positive. The gain wasn’t impressive though, as the system only bagged a grand total of 15 pips.

Here are the trades and their corresponding results:

1. Invalid signal since RSI was already below 50.0 before the downward crossover.
2. Another invalid signal since RSI was over 50.0 before the upward crossover.
3. Invalid signal since RSI was below 50.0 before the downward crossover.
4. Long at 1.2296. Closed when 50-pip trailing stop was hit at 1.2225. +71 pips.
5. Short at 1.2326. Closed due to new crossover at 1.2342. -16 pips.
6. Long at 1.2342. Closed when 50-pip trailing stop was hit at 1.2337. -5 pips.
7. Short at 1.2334. Closed due to new crossover at 1.2333. -1 pip.
8. Long at 1.2333. Closed due to new crossover at 1.2323. -10 pips.
9. Short at 1.2323. Closed due to new crossover at 1.2334. -11 pips.
10. Long at 1.2334. Closed due to new crossover at 1.2311. -23 pips.
11. Short at 1.2311. Closed due to new crossover at 1.2304. +7 pips.
12. Long at 1.2304. Closed due to new crossover at 1.2283. -21 pips.
13. Invalid signal since RSI was below 50.0 before the downward crossover.
14. Long at 1.2325. Closed due to new crossover at 1.2349. +24 pips.
15. Invalid signal since RSI was already above 50.0.
16. Another invalid signal since RSI did not cross the 50.0 level.
17. RSI was above 50.0 during the crossover. Invalid signal.

Total gain: +15 pips

As you can see, there were numerous fakeouts, especially during the middle of the week. What I’ve learned from the months I have been testing the system is that fakeouts are normal. Systems catch them from time to time, but you can’t completely eliminate them. I’m just glad that the system had another positive week.

GBP/USD

GBP/USD Daily Chart

My trade on GBP/USD didn’t get triggered. As I promised in my trade post, I would go long if the pair closed around 1.5750. But it looks like the pair is taking it’s sweet, sweet time. It’s still lingering around the resistance level at 1.5730.

I still think that this is a valid setup. So I will be keeping a close eye on the pair. If the fundamentals and market sentiment still line up, I might just be able to take this trade this week.

XOXO,

Huck

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