A pretty weak trading week for the HLHB System, as the ranging environment took its toll on the trend-catcher strategy.
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 second full week of June:
As you can see from above, I’ve already closed the open EUR/USD trade that we traded last week. It even got a cute 5 pips from adjusting stop losses!
The new signal wasn’t as lucky. The first EUR/USD signal for the week passed both the RSI and ADX filters and signaled a buy trade even amidst a ranging environment. Fortunately, a sharp pop enabled me to adjust my stops and limit my losses before the pair proceeded to drop lower.
Overall, a pretty unfortunate but not altogether bad week for the trading system. The RSI and ADX filters still generally did their jobs, as they filtered a lot more invalid signals than they let through.
It would be interesting to see if we’ll get another ranging environment next week and how the HLHB System will react to invalid signals if we do.