Fakeouts, fakeouts everywhere! Thanks to a mostly ranging trading environment, the HLHB Trend-Catcher System ended the week in the red. Boo!
Read all about my HLHB Trend Catcher System if this is your first time hearing about it!
EUR/USD was caught between a rock and a hard place last week, as traders focused on the dollar’s rally across the board. The problem with buying EUR/USD, however, was that the euro zone had its own mix of bearish prospects that includes political uncertainties in Italy and France. As a result, EUR/USD traded on a tight range for most of the week. As you know, this is bad news for this trend-catcher system. By the end of the week, the system sustained a 96-pip damage from EUR/USD. Ouch.
Except for the bullish move at the start of the week, Cable behaved much like EUR/USD. That is, the pair was also confined in a tight range. In the pound’s case, the dollar rally was offset by more Brexit-related uncertainty. Thanks to signal #1 that yielded 97 pips, the HLHB’s losses from GBP/USD was limited to 46 pips. Phew!
That’s it for my HLHB update today! Let me know if you have any questions on the system and on the signals above!
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
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.