HLHB Weekly Update – January 27, 2012

HLHB Trend-Catcher

The Trend-Catcher 3.0 comes out with another winning week! There were a couple of losses, but a few wins more than made up for it. Below is the 1-hour chart of http://forums.babypips.com/eurusd/ along with the signals that the system generated.

EUR/USD 1-Hour Chart

1. Sold at 1.2928, closed when new crossover materialized (1.2934): -6 pips
2. Bought at 1.2934, 50-pip trailing stop hit (1.2884): -50 pips
3. Invalid signal, RSI did not cross 50
4. Bought at 1.2925,closed when 50-pip trailing stop hit (1.3004): +79 pips
5. Sold at 1.2998, closed when crossover materialized (1.3023): -25 pips
6. Invalid signal, RSI was already way above 50
7. Sold at 1.2997, closed when new crossover materialized (1.3023): -26 pips
8. Invalid signal, RSI was already above 50 for two bars
9. Sold at 1.3037, closed when 50-pip trailing stop was hit: 0 pips
10. Bought at 1.3048, closed when 50-pip trialing stop was hit: +87 pips
11. Sold at 1.3106, trade still open Total Gain/Loss: +59 pips

The pips gained this week weren’t as many as the weeks prior, but given how the market moved in the past few days, I think a 118-pip net gain is actually prettttttttty good! Besides, would you rather have a losing system or a winning one?

One thing that I have noticed that the Trend-Catcher 3.0 lacks is that it does not distinguish between each week. This means that when prices gap up or down over the weekend, there is a chance that the system can get into bad trades due to huge gaps. I saw it this week, when price started the week with a huge gap down. Hmm, perhaps put in a rule to close any open positions before the week ends? That way, weekend risk can be avoided.

EUR/USD

EUR/USD 1-Hour Chart

I wasn’t able to trade EUR/USD on my live account yesterday. I fell asleep when the pair broke above the previous day high. At first I was pretty bummed about it, then I noticed that the pair was just consolidating around 1.3150. And so, I thought that it might not be such a good idea to go long on the pair anymore. After a few more minutes, lo and behold, EUR/USD tumbled back to its day open price. Whew!

It looks like investors weren’t happy that the ECB still hasn’t come up with a debt deal with Greece. Consequently, the dollar was able to pare some of the losses it scored following the dovish FOMC statement.

So there, no trade for me in my live account this week. But it’s all good. Scoring three straight losses is bad enough as it is. I don’t want to extend my losing streak to four so I’m being extra careful now. Hopefully next week will be better.

That’s all, folks! Y’all have a great weekend!

XOXO,

Huck

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  • deerpark

    i had some issues at the start of the week where I was getting false negatives because i wasn’t waiting another hour for another candle to show up…. was really frustrating at first, but once i got the hang of the crossover system it ended up working in my favor. ended the week up 370 pips total over 4 currency pairs. thanks for the great info you guys post on your site!
    i am a marine stationed in hawaii and while i was in afghanistan i started getting into forex (about 6 months ago) and all i did was read over your site, and i went through the school about 6 or 7 times in my down time. i have recommended babypips to everyone i have talked to about forex, and i have gotten so many of my buddies into trading and so many of them started here on babypips. thanks again for all the hard work you guys put in! :D

    • huck

      Wow. That’s an amazing story deerpark. I’m so glad this website has helped you in that way! Thank you for all the good feedback!

  • mo’ pips

    Hi Huck,

    I close my mechanical system for the weekend(works for me).
    Also, for you trailing stop, are you using fixed or dynamic.
    Have a good weekend.
    Thanks
     

    • huck

      What’s the difference between fixed and dynamic? My 50-pip trailing stop moves per pip if that’s what you’re asking. If trade goes for me by 51 pips, the stop will be 1 pip above my entry point. :)

  • giancarlo

    Hello,
     
    I want to ask you two questions:
     
    1. what percentage of your margin do you invest when opening a position?
     
    2. what is your specific trading method? do you watch the chart all day, everyday day?