This trend-catcher is no match for this week’s topsy-turvy forex price action! As you can see, the lack of strong intraweek trends caused trouble for the HLHB’s open trades.
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.
Unlike in last week’s trading, the HLHB System wasn’t able to catch the stronger intraweek moves. What’s more, it actually validated a couple of fakeouts!
The signals don’t look too bad going into the next week, however. Most of the losses came from an open trade from the previous week, while a new (fakeout) signal limited gains on USD/JPY’s first trade.
Here are the numbers:
Looks like I have not one, but two open trades going into the week. One is a short trade on EUR/USD while the other will profit if USD/JPY falls. Pretty interesting to see which side the dollar trades over the next couple of days!