Blocked by the RSI! The HLHB System could have caught decent forex signals last week if not for the RSI filter. Here are updates on EUR/USD and GBP/USD!
Read all about my HLHB Trend Catcher System if this is your first time hearing about it!
EUR/USD
The HLHB system threw out a couple of fakeouts early in the week when EUR/USD was still in a tight range. Unfortunately, the system didn’t catch a break when its last signal, the one right before the big intraweek downtrend, was invalidated by the RSI filter. By the end of the week the system was down 4 pips on EUR/USD.
| # | Signal | Open | Close | Pips | Notes |
|---|---|---|---|---|---|
| 1 | Buy | 1.1293 | 1.1189 | -4 | New crossover |
| 2 | Sell | 1.1189 | 1.1189 | 0 | RSI was already below 50 |
| 3 | Sell | 1.1172 | 1.1172 | 0 | RSI was already below 50 |
| 4 | Buy | 1.1185 | 1.1185 | 0 | There was no crossover |
| 5 | Sell | 1.1176 | 1.1176 | 0 | RSI was already below 50 |
| TOTAL | -4 |
GBP/USD
Like in EUR/USD, the system also had a hard time validating signals that would have been profitable. More specifically, signals #7 and #9 would have gained a good number of pips if not for the RSI filter. By the end of the week the system saw a 29-pip loss on Cable. Talk about missed opportunities!
| # | Signal | Open | Close | Pips | Notes |
|---|---|---|---|---|---|
| 1 | Sell | 1.5427 | 1.5427 | 0 | RSI was already below 50 |
| 2 | Buy | 1.5414 | 1.5414 | 0 | RSI was already above 50 |
| 3 | Sell | 1.5404 | 1.5381 | 23 | New crossover |
| 4 | Buy | 1.5381 | 1.5369 | -12 | New crossover |
| 5 | Sell | 1.5369 | 1.5369 | 0 | RSI was already below 50 |
| 6 | Buy | 1.5391 | 1.5367 | -24 | New crossover |
| 7 | Sell | 1.5367 | 1.5367 | 0 | RSI was already below 50 |
| 8 | Buy | 1.5252 | 1.5236 | -16 | New crossover |
| 9 | Sell | 1.5236 | 1.5236 | 0 | RSI was already below 50 |
| TOTAL | -29 |
At least we know that the system CAN spot the start of trends. Maybe I just need to refine the filter? What do you think?
XOXO,
Huck
See also:
2014 HLHB Trend-Catcher Performance
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.