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 fourth week of November:
Last week the HLHB System ended the week with two open trades, one on GBP/USD and another on USD/JPY.
Cable’s signal closed with a loss after this week’s moves churned out two valid signals. But things are turning around for this trend-catcher, it seems. See, all three of the major currently have open trades and they’re looking good.
GBP/USD has jumped far enough to limit the current long trade to a loss of 69 pips, while EUR/USD’s buy signal has seen enough momentum for me to move my stop to a max of 5-pip loss. Meanwhile, USD/JPY has dropped further and allowed me to secure a nice 36-pip win for the system.
I’ve got mixed feelings over this week’s results. While I’m thrilled that the open trades are doing well, I’m still bummed that the system took another 133-pip loss AND missed a monster move on USD/JPY last week. Ughhhhh.
Fingers crossed for clearer and stronger trends on the major dollar pairs next week! Do you see any catalysts that might inspire strong dollar price action?