HLHB Weekly Update – May 13, 2011

EUR/USD 4-hour Chart

The HLHB Mechanical Trading System is back in action! Remember the short signal that it generated last week? Well, it turned to be a winner!

The signal from last week was a valid one since Stochastic was not yet oversold and the pair fell 30 pips below the low of the crossover candle.

Here’s a brief rundown of what happened in the trade:

1. The HLHB system entered two short positions at 1.4547 with a total risk of 1%.

2. The stop for both positions was 150 pips.

3. The first position hit its profit target at 1.4315.

4. The second position’s trailing stop was triggered at 1.4405 All in all, the system was able to take home 292 pips (150 + 142), which is a 1% gain. Woot!

So what moved the market this week? From what I’ve read on Pip Diddy‘s blog posts this past week, it seems like Europe’s sovereign crisis has come back into vogue.

The spotlight focused on Greece as S&P’s move to downgrade its credit rating once again sparked talks of the country being forced to restructure its debt. Heck! There are even those who say that it may eventually get booted out of the euro zone. To make matters even worse for Greece, protests against austerity measures turned violent and raised doubt on the government’s ability to meet its financial obligations. Yikes!

Looking ahead, I think Greece will still be one of the dominant themes in the market next week. After all, a fad doesn’t go away that fast. Justin Bieber is still around, isn’t he? Ha! I wonder what euro zone finance ministers have to say about Greece’s situation when they meet in Brussels…

Anyway, I had a really good week! Not only was I successful in trading the news, I also made a lot of friends on Twitter and Facebook! I may not have a date to watch R-Pattz’ movie Water for Elephants with, at least I have you guys in my follower list to discuss my trade ideas. (Aww, virtual group hug!)

If I could, I would stay in all day and just talk forex with you guys. But of course, I have to balance my trading with my job at the coffee shop. Trips to the salon and shoes don’t pay for themselves ya know. So I came up with this brilliant idea as a compromise.

I’m going to post one trade idea everyday (except on Friday) next week IF I get at least 50 more followers on Twitter by the end of Sunday (May 15), 12 midnight EST.

Little ole Huck needs a little convincing to give up a few precious sleeping hours for posting more trade ideas. More Tweeps should do the trick! I’ll take some of the setups but not all. (I wouldn’t want to overtrade.) Nonetheless, I pinky promise to give you a trade idea on the majors and I’ll put them up during the European sessions.

Whaddaya think of my proposal? Follow @LoonieAdventure on Twitter now!

  • Joshua Pearce Gibson

     Bribery…. will get you everywhere in life.

  • kjpip

     Great trade Huck.  Do you think the downtrend will continue?

  • Dean FX Paul

     Nice trade on the Euro.. some big downward moves likely due to Eurozone issues. I don’t expect Greece to go away before next week either, and now it appears Italy has been mentioned on the cards again. Although the Euro holds up strong, it might not be enough to stop more selling off.