The HLHB had a good run last week with more than 300 pips in the bucket. Unfortunately, it wasn’t so lucky this week as last week’s open trades run counter to the intraweek trends.
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, most of last week’s losses stemmed from the open trades that we kept at the end of the week. See, there were sell trades on EUR/USD and GBP/USD, which both had a good run thanks to overall dollar aversion.
The losses might have been easier to swallow if the system had also caught the nice intraweek uptrends on EUR/USD and GBP/USD. But the buy signal on EUR/USD was invalidated by the ADX filter while Cable’s buy signal was invalidated by the RSI filter.
Thank goodness for USD/JPY, though! While the pair popped up signals during a tight consolidation, it also managed to catch the dollar’s monster downtrend where it counted. In fact, this week’s open trade is starting with +93 pips locked in. Not bad!
Think we’ll see more strong trends next week? And if it does, will it involve the majors? I hope so!