HLHB Weekly Update – September 17, 2012

Ah, ’tis a sad week for the HLHB Trend-Catcher 3.0. Even though the pair trended upwards, the extreme volatility during the middle of the week distorted the RSI, preventing the system to jump in on the trend. In addition, the volatility the pair experienced also kept my trades from staying long enough to profit!

But there is good news: the trade that was left open the week before ended up with a huge win. It closed at the first crossover of the week, which enabled it to bag 150 pips.

EUR/USD Hourly Chart

You can see clearly that EUR/USD mostly moved higher during the week. Unfortunately, the rally was also a bumpy one! The German Constitutional Court’s ruling as well as the Fed’s FOMC Statement caused the pair to spike a couple of times.

Here are the signals that the HLHB Trend-Catcher generated:

1. Invalid signal since RSI did not cross the 50.0 level.
2. Another invalid signal. The RSI was already above 50.0 when the upward crossover happened.
3. Sold at 1.2780. Closed due to new crossover at 1.2778. -2 pips.
4. Long at 1.2778. Closed due to new crossover at 1.2767. -11 pips.
5. Short at 1.2767. Closed due to new crossover at 1.2805. -38 pips.
6. Long at 1.2805. Closed when 50-pip trailing stop was hit at 1.2822. +17 pips.
7. Invalid signal since RSI was already below 50.0 prior the crossover candle.
8. Invalid signal since RSI was already above 50.0 prior the crossover candle.

Overall, including the week prior’s trade, the system brought in a net total of 116 pips. Not bad!

As I for my discretionary system, I didn’t get in on any action last week. I don’t want to sit on the sidelines for long though, this is why I’ll be keeping close tabs on USD/CHF in the coming days. Should a valid trade setup materialize, you can count on me to pull the trigger!

I hope you guys have a good week. Good luck!

XOXO,

Huck

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