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While this trend-catcher might have managed to catch a few directional shifts, but its wide trailing stops also limited its profits. Here are this week’s numbers!

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.


EUR/USD 1-hour Forex Chart
EUR/USD 1-hour Forex Chart

As you can see, EUR/USD popped up a buy signal just before EUR/USD started reaching for 1.2400. Unfortunately, the trailing stop was 150 pips wide, and the HLHB wasn’t able to lock in pips before the pair reversed. Boo!


GBP/USD 1-hour Forex Chart
GBP/USD 1-hour Forex Chart

No new signals from Cable this week, though last week’s price action enabled me to close the previous week’s open trade with a 103-pip win. Woot!


USD/JPY 1-hour Forex Chart
USD/JPY 1-hour Forex Chart

Now this one’s just a straight up fakeout. USD/JPY encountered strong support around the 105.50 area, enough to cause a 129-pip loss when the pair reversed.

Here are the numbers:

Okay, time to evaluate. For the past couple of week’s I’ve been seeing decent signals that turned into losses because of a wide stop. Think I should dial them down from 150 pips for all three pairs?

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