What do you know… Thanks to the huge euro rally, the HLHB Trend-Catcher system had an EXTREMELY good week!
Before you go on, make sure to read up on the rules of the HLHB Trend-Catcher system so you don’t get confused. The original system uses a 4-hour chart, but a reader had suggested that it works better on the lower time frame so I started using the 1-hour a few weeks back.
Okay, so moving on… Take a look at this chart.
As you can see, there were a lot of losing signals. Fortunately, the system was able to catch the two big upward moves this week, whose gains were more than enough to make up for the losing trades. The total was a net gain of 316 pips.
Sadly, I missed out on all the action on my discretionary system. I planned on buying EUR/USD at 1.3840. However, the pair didn’t make a new high and my trade didn’t trigger. Pfft!
I was talking to my home girl Happy Pip earlier and I told her that I’m pretty frustrated about not having a trade for a second week in a row. She told me that no trade is better than a loss, so I guess I don’t have to be too bummed out about it. After all, there’s always another week, right?
I wonder what the dominating themes for next week would be. For the past few days, it seems like the market’s focus was on the developments in Europe’s sovereign crisis. Risk appetite dominated market sentiment on optimism that policymakers would come up with a solution to keep Greece from defaulting and a contagion from happening. Investors were pretty giddy that not even the rejection of the EFSF bill in Slovakia’s parliament kept them from investing in higher-yielding assets!
With that said, I’ll be sure to keep an ear out for news coming out of Europe. Two weeks of being in the sidelines is enough. I hope I can get in on the action in the charts next week. *fingers crossed!*
Care to share how you did in this week’s trading?