A trending environment wasn’t much help for the HLHB this time, as it failed to capitalize on the biggest moves and even got caught up with a few fakeouts. What a week!
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:
EUR/USD’s first signal was validated by the HLHB, which was unfortunate since it popped up at the start of a consolidation that eventually led to the pair’s decline. If the HLHB had invalidated the fakeout, then we would’ve kept last week’s trade open and gained massive pips!
The HLHB had a good call with a short trade at the beginning of the week. I haven’t closed the position, though, since the pair hasn’t met the profit OR dynamic stop loss parameters. Think 400 pips is asking too much in this case?
USD/JPYMuch like in EUR/USD, the HLHB validated the first signal of the week. And like in EUR/USD, it also turned out to be a fakeout. There was a profitable signal later in the week, though it was invalidated by the RSI filter. Boo!
Here are the numbers:
I realize It’s been a while since the HLHB saw a signal reach its full profit target. Do you think 400 pips is asking too much when trading the 1-hour time frame?