While I raked in pips in my live discretionary trading account (check out my 100-pip win on my EUR/USD trade!), the HLHB Trend-Catcher System didn’t do too well this week. It received a lot of signals but most of them were fakeouts!
If you look at the chart I posted below, I had 9 losing trades and only 1 winning trade. Even though the winning trade was huge, it gain wasn’t enough to make up for the losing trades.
All in all the HLHB Trend-Catcher experienced a 262-pip loss. Still, I’m not really fazed. I know that forward-testing a mechanical system in a demo account is one of the best ways to tweak it to “perfection.” Through these losses, I can understand which indicators work and what parameters to change. Besides, the only thing I lose is time and maybe my future demo mansion!
Also, given the topsy-turvy moves in the markets this week, I’m not really surprised that my system generated a lot of fakeouts.
From what I’ve read on Pip Diddy’s commentaries, it seems like higher-yielding currencies were able to rally at the start of the week as investors grew optimistic of Greece’s financial situation. However, when European policymakers failed to deliver any concrete plan to save the debt-ridden country, risk aversion started to dictate price action.
I have a feeling next week’s action on the charts won’t be much different from what we saw this week. It’s already the end of September and with Greece running out of cash fast (from what I’ve heard, they only have enough funds until mid-October), the spotlight is still gonna be focused on Europe.
That’s just my two cents though. What do you guys think?