Not a lot of valid signals from this trend-catcher system, but I did close an open trade that yielded tons of pips! Here are 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, EUR/USD, GBP/USD, and USD/JPY were all in tight ranges for most of the week. And why not? Between the NFP report, start-of-month (and quarter!) uncertainty, and jitters over the U.S. tariffs that were set to go live last Friday, dollar traders preferred to stay in the sidelines.
USD/JPY was the most exciting pair again thanks to a new valid signal that required closing last week’s open trade. While this week’s signal was kept open, the trade closed yielded a nice 112 pips. Woot! Woot!
Let’s see how dollar traders react to next week’s catalysts. Both my EUR/USD and USD/JPY positions are in favor of more dollar weakness, but we might see a wiggle or two when Governors Kuroda and Carney give their speeches over the next couple of days!