The NFP week was a bust for the HLHB Trend-Catcher System, as it got peppered by fakeouts from both EUR/USD and GBP/USD. Here are the deets!
Read all about my HLHB Trend Catcher System if this is your first time hearing about it!
There were no major euro or dollar-related reports scheduled early in the week, so it’s not surprising that EUR/USD traded in a tight range before the NFP release. The pair only started seeing action on Thursday when a couple of weaker-than-expected U.S. reports encouraged profit-taking from long dollar positions. The pair was then propelled to the 1.1250 levels when the better-than-expected NFP headlines came out, but soon saw a move back to its weekly average prices when traders took a closer look at the reports.
The HLHB System did NOT have a good week with EUR/USD, as it only validated 4 out of 10 signals and 3 of them turned out to be fakeouts. Signal #7 would’ve been a pretty good trade if it wasn’t cut short by a new crossover.
Cable wasn’t too different from EUR/USD, as it also saw tight trading conditions for most of the week. As you can see, signal #7 would’ve been the trade of the week if it were not invalidated by the RSI filter. BOO!!! Unfortunately, all the system got from GBP/USD this week were fakeouts, which contributed to a net loss of -113 pips by the end of the week.
Overall the results are what you can expect from using a trend-catcher on a ranging week. Crossing my fingers for stronger trends though! Do you think there’s a dance or ritual I’m missing to get one of those trend-y weeks?
P.S.: Remember to never risk more than 1% of a trading account on any single trade and to adjust position sizes accordingly. Create your own ideas and don’t follow what I do. Better yet, read the Risk Disclosure!
2014 HLHB Trend-Catcher Performance Here are some books if you want to get deeper into building systems & algorithms. BabyPips.com receives a small credit from any purchases through the Amazon links above to help support the free content and features of our site…enjoy!
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.