The next crossover proved to be profitable as well. The first position hit its PT for 150 pips while the second position’s 150-pip trailing stop got hit after it gained 379 pips. Don’t you just love trend-following systems on trending markets? I know I do!
Unfortunately, the system didn’t do very well during the second half of the week. There were three whipsaws that amounted to a total loss of 175 pips.
All in all, the week was a good one for the HLHB Trend-Catcher. I hope next week will be the same!
On the other hand, my GBP/USD trade didn’t work out as well as I wanted it to. My sell order at 1.5980 got triggered when the pair broke past resistance at the falling trendline. Boo!
It looks like risk appetite picked up when Greek Prime Minister Papandreou announced that the referendum for the EZ debt plan is canceled. Investors were pretty happy about it that not even a surprise rate cut from the ECB took a toll on market sentiment!
Oh well, I guess market participants are just relieved that uncertainty in the global economy has now somehow eased with Greece’s latest decision.
Sell GBP/USD at 1.5980, stopped out at 1.6050 with a 70-pip loss (-1.00%)
I wonder if the positive vibes will last until next week. If so, we’ll probably see the dollar get sold off again. What do you think?