Yay, things are looking up for the new HLHB Trend-Catcher System tweak! Here are updates on EUR/USD, GBP/USD, and USD/JPY’s open trades as well as a new signal from last week.
Read all about my HLHB Trend Catcher System if this is your first time hearing about it!
As I’ve mentioned before, I’ve decided to stick to my second tweak in my forward tests for the next couple of weeks. Basically, I’m adding the ADX indicator as a filter on top of the RSI and applying all of them on the 4-hour time frame instead of last year’s 1-hour charts.
Here are the results from the first full week of March:
Much like in last week’s update, only EUR/USD posted a legit signal. See, EMA crossovers from both GBP/USD and USD/JPY were either invalidated by the RSI or ADX filter or both. USD/JPY’s last signal was particularly disappointing since it looked like it would’ve caught a decent intraweek trend.
Despite that, the filters seem to be doing their job. If you recall, we had two open trades from the previous update. EUR/USD’s open trade was automatically closed with a 21-pip gain as soon as we entered a new position at 1.0581 while USD/JPY’s open trade is still going strong with its stop loss adjusted to secure a 91-pip win. Woot!
So far so good! For now, the results are still consistent with my backtest figures from 18 months to December 2016. That is, HLHB System’s tweak #2 still tends to miss one or two (or twenty) decent intraweek trends but is generally pretty good at filtering fakeouts.
That’s it for my HLHB update for now! 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!
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.