The HLHB Trend-Catcher 3.0 generated a lot of signals this week. Sadly, the winners did not offset the losses that were incurred. Here’s how each trade came down to:
1. Sell at 1.3148. This was the signal from last week. It closed on the new crossover: 0 pips
2. Bought at 1.3148, closed when 50-pip trailing stop was hit (1.3156): +8 pips
3. Sold at 1.3117, closed when 50-pip trailing stop was hit (1.3106): +11 pips
4. Bought at 1.3152, closed on new crossover: -48 pips
5. Sold at 1.3114, closed when 50-pip trailing stop was hit (1.3070): +44
6. Bought at 1.3130, closed on new crossover: -34
7. Sold at 1.3096, when 50-pip trailing stop was hit (1.3146): -50 pips
8. Bought at 1.3047, closed on new crossover: -42 pips
9. Bought at 1.3178, closed on new crossover: +76 pips
10. Invalid signal since RSI did not cross 50
11. Invalid signal since RSI was already above 50
12. Sold at 1.3260, closed on new crossover: -22 pips
13. Invalid signal since RSI was above 50
14. Sold at 1.3279, closed when 50-pip trailing stop was hit: -50 pips
15. Bought at 1.3311, closed on new crossover: -32 pips
16. Sold at 1.3276, signal still open
Total gain/loss for the week: -132 pips
Well, I guess all winning streaks must come to an end. For the first time since the start of the year, the HLHB Trend-Catcher 3.0 produced a negative result. But I have to be honest, I saw this coming. EUR/USD was in consolidation for the most part of the week as markets awaited for the a Greek debt deal. Speaking of which!
I didn’t pull the trigger on my EUR/USD trade idea as I said I would yesterday. Well, for one, the pair has not reached my entry area at 1.3200. Second and more importantly, it seems like the fundamentals don’t align with my trade idea anymore.
From what I’ve read, Greece already announced it’s debt deal but it seems like officials from the Trioka are skeptical about the country’s capability to meet the debt-reduction targets that were set. And so, the Greeks may still not get the financial aid that they’ve been hoping for despite all their hard work. Yikes!
I think I’ll just keep an ear out for more news about the euro zone and make a decision sometime next week whether or not I will buy EUR/USD on my live account, using my discretionary system.
As for my HLHB Trend-Catcher 3.0, I still believe the system is a good one. The only shortfall for now is that it doesn’t filter out the fakeouts very well. One of my readers suggested using the “Trend Setter” indicator.
Perhaps I could give it a try… The only problem is that its an MT4 template and I am using a different charting platform. I’ll have to start forward testing the Trend-Catcher on MT4 if I’m going to use the Trend Setter. I’ll see if I can find a way to try it. I’ll be sure to let you know, whether or not I can forward test the indicator.
Anyway, that’s all I have for this week. Enjoy your weekend guys!