A mixed forex trading week for the HLHB System, as I close USD/JPY’s open position for a profit while two of GBP/USD’s signals turned out to be a fakeout.
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 week of May:
After weeks of watching over it, I’ve finally closed USD/JPY’s open position! The trade closed at 112.87, which stings a bit since it went up to as high as 114.37 before it hit the adjusted stop loss. Still, +382 pips isn’t so bad, don’t you think?
Oh, and there’s a new trade in town! The HLHB printed another valid signal, this time another buy at 111.64. Fingers crossed for another good run!
Meanwhile, GBP/USD’s signals are giving me eye twitches. See, it printed not only one, but TWO fakeouts throughout the week! Even worse, one of them took the full 150-pip hit when the pair reversed as soon as the signal was triggered.
Overall, still not a bad week although it has once again underscored the importance of filtering out fakeouts without choking gains. Got any ideas for that?
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.