A mixed week for the HLHB, which saw two losses on USD/JPY but monster unrealized profits on EUR/USD. Check out the charts!
Before we get to the details, read all about my HLHB Trend Catcher System if this is your first time hearing about it!
Basically, I’m catching trends whenever the 5 EMA crosses above or below the 10 EMA. A trade is only valid if RSI crosses above or below the 50.00 mark when the signal pops up. And in this version, I’m adding ADX>25 to weed out the fakeouts.
As for stops, I’ll continue to use a 150-pip trailing stop and a profit target of 400 pips. This might change in the future, but I’ll stick to this one for now.
Oh, and as mentioned before, I’m switching back to applying the HLHB system to the 1-hour time frame. Using 4-hour in Q1 2017 and Q2 2017 wasn’t bad, but I think using this trend-catcher on the 1-hour could yield better results.
EUR/USDThe HLHB didn’t see any new valid signal this week, which is totally fine with me since the system is already nursing an open short trade from last week.
Thanks to EUR/USD’s strong downtrend, last week’s trade now has a whopping 821 pips locked in at the start of next week. Not bad at all!
GBP/USD saw a fast and furious downswing almost as soon as the week started and bears didn’t take a breather until Thursday when GBP/USD found some support just below 1.1500.
The only valid signal popped up near the end of the week so it’s not surprising that we’ve only got an adjusted stop loss instead of locked in pips like in EUR/USD. For now, HLHB’s open trade can only lose a max of 78 pips no matter how Cable trades.
USD/JPYA new valid trade at the start of the week meant I had to close last week’s open trade at a loss.
As if that doesn’t hurt enough, the system also validated a short signal just before USD/JPY rocketed like there’s no tomorrow. Boo!
Here’s a summary of this week’s results: