HLHB Weekly Update – March 11, 2011

EUR/USD 4-hour Chart

Just when I thought I had another chance to ride the dollar’s rally with my HLHB system, my 30-pip filter becomes a party pooper!

Don’t worry, I’m calmer now than I was last week thanks to yoga! I think I told you guys on Twitter that I was going to try it. You know what, I can already feel it doing wonders for my temperament!

I was so giddy when I saw that there was a crossover on Wednesday. You can’t imagine how bummed out I was when I realized that I didn’t have a valid trade because of my 30-pip filter and Stochastic was already flirting with the oversold mark. Gosh!

But as I said last week, I just have to be patient. Perhaps a few more yoga classes and I’ll be able to find my Zen. Who knows, I could end up thanking my filters! Because to be honest, I don’t know exactly WHY the dollar gained against most of its major counterparts this week! My best guess is it is the combination of profit-taking and a slight case of risk aversion.

Apparently, sovereign debt fears have come to haunt euro zone again. Earlier this week, Portugal’s bond auction was a major flop, causing bond yield prices in the region to skyrocket. I’m no expert in “bonds” and “yield” but I do know that higher yields reflect low investor confidence! (Thank you School of Pipsology!)

There are also rumors going around that some Fed members will drop their “extended period of low rates” talk. I know, I know, it’s just market gossip… but rumor or not, if it affects the market, then I must pay attention to it!

Alright, that’s it for Huck this week! I can’t wait to see how my EUR/USD and USD/JPY trades turn out next week. My fingers are crossed!


  • 6505341124

    What happen if you have managed to enter a long trade using HLHB system which is to ride a long term trend? You already had a short trade for the same pair which you mentioned is for longer term too. Are you trying to hedge or are you confusing yourself?

  • 6505341124

    What happen if you have managed to enter a long trade using HLHB system which is to ride a long term trend? You already had a short trade for the same pair which you mentioned is for longer term too. Are you trying to hedge or are you confusing yourself?

  • Huck

    @6505341124

    I trade the HLHB system to see whether mechanical systems work or not rather than to actually make profits. My discretionary trading account is different from the HLHB system. Besides, the trades on this system usually are longer term, which means they have wider stops, larger profit targets, and different rules of entry/exit. Hope that makes sense! :)

  • Huck

    @6505341124

    I trade the HLHB system to see whether mechanical systems work or not rather than to actually make profits. My discretionary trading account is different from the HLHB system. Besides, the trades on this system usually are longer term, which means they have wider stops, larger profit targets, and different rules of entry/exit. Hope that makes sense! :)

  • shawnducati

    Huck,

    I am working with a system very similar and I am having great returns. Here are two suggestions, and let me know how it works in say 2 months:

    1. replace stochastics w/ RSI and confirm uptrend with 50 or greater to get in, then less then 50 to get short

    2. dont worry about overbought or oversold

    3. change your sma’s to 5 and 21 SMA

    sjw

  • shawnducati

    Huck,

    I am working with a system very similar and I am having great returns. Here are two suggestions, and let me know how it works in say 2 months:

    1. replace stochastics w/ RSI and confirm uptrend with 50 or greater to get in, then less then 50 to get short

    2. dont worry about overbought or oversold

    3. change your sma’s to 5 and 21 SMA

    sjw