Though there were tons of fakeouts that got validated last week, the HLHB System still managed to gain +166 pips from the ruckus. I’ve got the deets!
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.
As you can see, there were A LOT of signals that got validated from EUR/USD, GBP/USD, and USD/JPY last week. And unlike in the previous week’s signals, a number of them were actually decent attempts at catching trends.
EUR/USD was the most active with four new signals, but USD/JPY still contributed the most pips with a net gain of 156 pips. At the end of the week, the HLHB is up by a net of 166 pips in last week’s trading. Not bad, huh?
Next week all three major pairs have open trades with EUR/USD’s signal showing the most promise with its +46 pips locked in. Looks like I’m selling all three pairs, though, so a dollar-bullish trend would yield more pips for the HLHB.
Think we’ll see more dollar strength over the next couple of days?