Fakeouts, fakeouts everywhere! Despite relatively strong trends, the HLHB System got caught in a bunch of forex fakeouts this week. Boo!
Before we get to the numbers, 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 last week of November:
Unlike in last week’s trading where we saw a cool +308 pips in net gains for the system, this week turned out to be a trip to Fakeoutsville.
For starters, GBP/USD popped up two new valid signals, both of which turned out to be fakeouts. Heck, it almost wiped out last week’s beautiful gains!
EUR/USD didn’t fare much better, as its two signals ended with a slight win and a trade that’s a hair’s breadth away from an adjusted stop loss.
Last but not the least is USD/JPY, which straight up validated a short signal almost right before the pair trended higher for the week. There was actually a signal to go long, but it was invalidated by the RSI filter. Boo!
With the end of the year around the corner, I’m hoping for big trends that would push HLHB’s numbers in the green. Think we’ll see stronger trends next week?