HLHB Weekly Update – November 18, 2011

Last week, I ranted on how the HLHB Trend-Catcher was a terrible system as doesn’t seem to filter out whipsaws. Then, out of nowhere, it gave me two amazing trades this week! Nevertheless, I believe the system can still be greatly improved, and I’ll stick with my decision to change completely or tweak it in 2012.

If you’re interested in knowing more about this mechanical trading system, you can check out the HLHB Trend-Catcher system rules.

HLHB Trend-Catcher

EUR/USD 1-Hour Chart

Remember that signal from last week that was kept open? Well, that turned out to be a huge winner, banking me 212 pips. The following signal was also huge, as it raked in 273 pips. The next two signals following were dudds though. They had a combined loss of 62 pips.

Overall, it was a good week, but that doesn’t change the fact that the system catches soooooooooooo many whipsaws. The indicators don’t seem to do much, as they filter out crossovers once in a blue moon. The Trend-Catcher might as well just be an EMA crossover system…

EUR/USD

EUR/USD 1-Hour Chart

On the other hand, I didn’t get in on any action with my discretionary system. My EUR/USD trade didn’t get triggered. As I pointed out, I was planning to short the pair at the resistance area at 1.3550. However, the pair didn’t retest the level before trading lower. Boo!

Short EUR/USD at 1.3550: Didn’t trigger

As Pip Diddy has written in his blog, rising bond yields took a toll on market sentiment for the most part of the week, sending higher-yielding currencies lower on the charts. However, after dropping like a rock on the charts one day after another, the euro was finally able to find support around 1.3450.

Will we see a reversal soon?

Maybe. But I think that unless the ECB does something to calm the markets, investors will remain jittery. Let’s wait and hear what ECB head honcho Mario Draghi will have to say.

That’s all I have for y’all this week! Have a great weekend guys!

XOXO,

Huck

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  • Cldchc

    Are you using EMA 20 – 10 or EMA 10 – 5 righnow?