The major dollar pairs might have seen a one-directional movement for most of the week, but it was a slow and steady race that did nothing for this trend-catcher system.
But first, read all about my HLHB Trend Catcher System if this is your first time hearing about it!
Basically, I’m catching trends whenever the 5 EMA crosses above or below the 10 EMA. A trade is only valid if RSI crosses above or below the 50.00 mark when the signal pops up. And in this version, I’m adding ADX>25 to weed out the fakeouts.
As for stops, I’ll continue to use a 150-pip trailing stop and a profit target of 400 pips. This might change in the future, but I’ll stick to this one for now.
Oh, and as mentioned recently, I’m switching back to applying the HLHB system to the 1-hour time frame. Using 4-hour in Q1 2017 and Q2 2017 wasn’t bad, but I think using this trend-catcher on the 1-hour could yield better results.
Without further ado here are the results from the third week of November:
In last week’s update, we left not one, not two, but THREE trades open going into the next week. Unfortunately, they didn’t really work out. GBP/USD and USD/JPY both gave up most of their gains to close a few pips ahead of the entry level, while the EUR/USD trade almost maxed out its stop loss.
Taken together, last week’s trades resulted to a 194-pip loss for the system. Boo!
This week have another set of trades brewing. If they end up with big losers again despite a pretty decent trending environment, I think I’m gonna think about adjusting my stop loss so the trades don’t give up as much of their wins as they’re doing right now.
Fingers crossed for next week’s signals!