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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

EUR/USD 1-Hour Forex Chart
EUR/USD 1-Hour Forex Chart

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

GBP/USD HLHB System Forex Chart
GBP/USD HLHB System Forex Chart

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

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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.