It was a close battle between the winners and the losers this week, but one loser managed to tip the scales against this trend-catcher’s favor. Can you guess which pair produced the rogue signal?
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:
In last week’s trading the HLHB trend-catcher still managed to gain some pips despite a ranging environment.
The opposite happened this week when the mechanical system ended the week with net losses despite a pretty trend-y week for EUR/USD, GBP/USD, and USD/JPY.
GBP/USD and USD/JPY both produced winning and losing trades, but a (valid) fakeout on USD/JPY eventually tipped the scales against the HLHB. Not all hope is lost, though!
As you can see, EUR/USD and GBP/USD are sporting new open trades that look promising. I’m keeping my eye out on EUR/USD’s signal, in particular, since it popped up after what looks like a reversal on the 1-hour chart.
Will the Greenback finally bring sexy back this week? I gotta keep close tabs on it if I want to manage my long GBP/USD trade well!