New year, new chance to make some mechanical system pips! Looks like we’re starting the year with not one, but TWO new valid signals. Woot!
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, let’s take a look at the results from last week:
As you can see, EUR/USD’s buy signal is looking promising since it’s near a previous area of interest. Can’t say the same for GBP/USD’s signal, though! See, unless Cable breaks below last week’s lows, then we might be looking at a fakeout in the making.
No closed trades this time, so I’ll keep my update short and sweet.