HLHB Weekly Update – March 9, 2012

HLHB Trend-Catcher 3.0

When EUR/USD trends, do you know who benefits? Me of course, thanks to the HLHB Trend-Catcher 3.0! This week, I had a total of 6 signals but only 5 valid trades. Below is a short summary of how this week went.

EUR/USD 1-Hour Chart

  1. Sell signal from the last update. Sold at 1.3311, closed at the close of the new crossover at 1.3207: +104 pips
  2. Bought at 1.3207, closed at new crossover at 1.3214: -7 pips
  3. Sold at 1.3214, closed at new crossover at 1.3140: +74 pips
  4. Bought at 1.3140, closed at new crossover at 1.3122: -18 pips
  5. Invalid signal, RSI was already below 50 since the last candle
  6. Bought at 1.3148, trade closed when trailing stop was hit at 1.3228: +80 pips

Total gain: +233 pips

I must admit, I’m really impressed at how the system is able to catch the trends (hence the name). However, I wish there was some way I could avoid getting fakeouts when the market ranges…

Perhaps some human intervention is required? But that would go against the whole philosophy of mechanical trading! Hmmm, I’ll think about this over the weekend.

GBP/USD

GBP/USD 1-Hour Chart

Sadly, I cannot say that I am happy with how my GBP/USD trade went. My sell order at 1.5800 got triggered when the pair rallied strongly and closed above the psychological handle during the London session.

It looks like market sentiment shifted when talks about Greece getting more than enough investors to participate in its bond swap deal started to circulate in the markets. Of course, it also helped that BOE Governor Mervyn King warned of inflationary risks in the economy. The central bank didn’t hike rates but risk appetite and King’s remarks seemed enough to get the pound bulls hustlin’.

Realizing the change in fundamentals, I decided to close my trade at a loss at 1.5827. I also didn’t like how the pair is looking on the charts, trading above the 61.8% Fibonacci retracement level and making higher lows.

Sell GBP/USD at 1.5800, closed at 1.5827: -27 pips/-0.6%

I’m not the happiest kid in the block after losing this trade. However, I think I made the right decision in limiting my loss. I didn’t win on my live account this week but maybe next week will be better.

How are your trades doing? Update me!

XOXO,

Huck

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  • Cyber-Ron

    Hi Alessandro Fenati !

    I’m alsi using MT4 with RSI but I can’t find the settings for applied to “close”. Can you please explain where to find those settings?

    Happy trading!

    • Alessandro Fenati

      I’m sorry i’m not using the english version, but i think you can understand. Huck do you agree with what I’m saying?

      • huck

        The screenshot you posted is correct! I think that’s how you do it with Mt4. I use a different charting software that’s why I’m unfamiliar with MT4.

  • hellopip

    HI  Huck 

    What time do you start to trade , when is the best time to use your system ?  

    • huck

      My backtest used a 24-hour period so I don’t know how it would fare if you just used it on certain periods in the day.

  • Alessandro Fenati

    Hi Huck!

    Thank you again, thank you very much, for HLHB Trend-Catcher 3.0 !!

    I use MetaTrader and now i’ve set RSI applied to “close” instead of HL/2 and i have your same values. I think it’s more effective and more useful applied to close, talking about avoiding invalid signals.

    Have a nice week, Huck!

  • alwjmonster

    Awww… If you could only hold a little bit longer for GBP/USD pair.. you could go for shopping spree during this weekend. tough luck, have passion.. happy trading everyone!!

    • huck

       I know! I would’ve taken home a lot of pips and would’ve been done for the month!

  • Mikausa2004

    Hi HUCK , How much time do you spend to catch the trend? Look like you chase the market all day to be able to catch the crossover. This technique you have to monitor the trade until you hit the target.right?

    • Hongling84

      you could set target profit and trailing stop loss once you entered your positions.catching the trend wise, suppose you spend 3 mins every hour to see if the EMA and RSI crossovers to trigger the buy/sell signal.

  • Steven Rogers

    Maybe try watching the 200 sma more in such cases like with you GBP/usd trade.

  • woris

    Hello Huck, when I review your GBP/USD trade,your wouldn’t have entered this trade if only you had applied your trentcatcher 3,0!
    There was no signal for a short trade at that time.
    Best wishes