It was a topsy-turvy week for the HLHB, as it saw LOTS of signals from all three major pairs. Check out the 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.
Though all three major pairs had decent intraweek trends, there were also lots of takeouts that broke potentially profitable trend trades.
EUR/USD only had one valid signal but it did close last week’s open trade with a win and is on track to close more gains next week.
Ditto for GBP/USD, which only had one signal that’s also on track to closing a win.
It’s USD/JPY that presented some trouble. It had FIVE valid signals, all of which popped out when the dollar was consolidating.
Thankfully, all those fakeouts were mostly canceled by the winners so that the HLHB only lost a net of 2 pips for the week. Phew!