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.
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.
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!