HLHB Weekly Update – March 18, 2011

HLHB: EUR/USD 4-hour Chart

Last week my 30-pip filter annoyed me like that “Friday” song. But now, because it saved me from a fakeout, I’m head over heels for it! Oh, how I love you my 30-pip filter! I hope I don’t end up saying the same thing about that annoying song too. I have to admit though, it’s catchy! I can’t remember who sang it, but I promise I’ll let ya guys know later on Twitter.

Anyway, enough about my music taste. Let’s look at how my HLHB system fared this week, shall we?

As you can see, a crossover materialized early on in the week. It would have been a valid buy signal if not for my 30-pip filter. I would’ve gotten stopped out if I entered though. The pair merely ranged and it fell below the low of the crossover convincingly soon afterward.

I know my HLHB system hasn’t been getting any signals lately. But hey, at least it’s also keeping me away from losing trades too, right? Sooner or later, my system is gonna give me a super major major winning trade… I know it will!

As for the fundamentals, fears of a nuclear breakdown in Japan sparked risk aversion and dominated market sentiment for the most part of the week. It also didn’t help that political unrest in the Middle East seemed to be only getting worse. Consequently, these sent higher-yielding currencies in the bear lair.

Too bad for me, the dollar didn’t benefit as much as its other safe haven counterparts, namely, the yen and the Swissy. In fact, the yen was so strong that the G7 agreed to a joint intervention, the first one since 2000, just to tame it! I’m pretty sure our resident economic guru Forex Gump will have more details on that. So stay tuned!

Anyway, my EUR/USD trade turned out to be a serious letdown. It rallied ALL THE WAAAAY up to 1.4050 which happens to be my stop. My USD/JPY trade, on the other hand, was a success! Even though I closed my second position at breakeven, I was able to take profit on my first one.

So… One winning trade, one losing trade, and one “I-got-saved” trade. Decent week, I suppose, considering how volatile the market was. That’s all for now you cool cats! Have a great weekend!

  • Spud Mann

    How do I set this up on MetaTrader?

  • fong

    Hi,
    I am new here. I have been following your EUR/US trade for past few months from aug 2010 till now, trying to pick up some tips. The statistic does not look promising: You had 7 losing and 0 winning short trades, 2 winning and 1 losing long trade. You also had 2 missed long trades which if trigger will provide 2 additional winning long trades.Is there a reasons why you persisted with short trades when clearly the trend show otherwise?

  • fong

    Hi,
    I am new here. I have been following your EUR/US trade for past few months from aug 2010 till now, trying to pick up some tips. The statistic does not look promising: You had 7 losing and 0 winning short trades, 2 winning and 1 losing long trade. You also had 2 missed long trades which if trigger will provide 2 additional winning long trades.Is there a reasons why you persisted with short trades when clearly the trend show otherwise?

  • AndreJ85

    Hi Huck. I’m new here and am just getting my feet wet in the forex game. I downloaded the EA for your HLHB system. I tried back-testing it on the EUR/USD and you are right, it didn’t perform too well. However, I saw that it seems to perform well on trending pairs, so I tried it on the USD/CHF pair and it worked pretty well. It was only on a demo account, but I think it may be worth considering. What do you think?

  • AndreJ85

    Hi Huck. I’m new here and am just getting my feet wet in the forex game. I downloaded the EA for your HLHB system. I tried back-testing it on the EUR/USD and you are right, it didn’t perform too well. However, I saw that it seems to perform well on trending pairs, so I tried it on the USD/CHF pair and it worked pretty well. It was only on a demo account, but I think it may be worth considering. What do you think?

  • Huck

    @Fong The HLHB system is purely mechanical, which means I take the trade as long as it fulfills all the rules. And my system really has a lot of losses, but it makes up for it in big wins. The HLHB system was positive for the year 2010! :)

    @AndreJ86 Awesome observation. I will check it out… I didn’t think of testing it on another pair!

  • Huck

    @Fong The HLHB system is purely mechanical, which means I take the trade as long as it fulfills all the rules. And my system really has a lot of losses, but it makes up for it in big wins. The HLHB system was positive for the year 2010! :)

    @AndreJ86 Awesome observation. I will check it out… I didn’t think of testing it on another pair!

  • AndreJ85

    No problem Huck. I hope it works for ya! I’m trying to get a system together as well, LOL! It’s much harder than I thought.

  • AndreJ85

    No problem Huck. I hope it works for ya! I’m trying to get a system together as well, LOL! It’s much harder than I thought.

  • Huck

    @AndreJ85 Same here. When I first started, I thought it would be sooooooo easy! Man, was I wrong!

  • Huck

    @AndreJ85 Same here. When I first started, I thought it would be sooooooo easy! Man, was I wrong!