All three major pairs popped up valid signals this week, but I had to close one fakeout that wiped out the system’s small gains. Here are 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.
As you can see on the chart below, all open signals from last week actually eked out decent gains. This week’s signals are a little more mixed with 32 pips locked in on USD/JPY’s open trade and a whopping 142-pip loss on Cable’s fakeout.
At the end of the week, the HLHB System registered a net loss of 31 pips. Not bad considering the gains from last week, but it would’ve been nice if the fakeout wasn’t validated at all.
Anyway, it looks like the HLHB has conflicting signals going into the week. USD/JPY’s long trade already has 32 pips locked in, but EUR/USD’s long position is still pretty exposed to potential losses.
Can’t wait to see what the dollar bulls and bears bring in the next couple of days!