Closing an open trade yielded pips for the system, but a change in the Greenback’s trend translated to a few losses for this trend-catcher. Boo!
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, I had two open trades from the previous week that would benefit from more dollar losses. So while I’m all for one-directional moves, I didn’t appreciate THIS particular trend change.
EUR/USD’s open trade closed with decent enough pips. Unfortunately, the gains weren’t enough to offset the losses from GBP/USD and USD/JPY.
If only the HLHB system was flexible enough to detect (and take advantage of) trend-changes like these. Maybe taking some profits off after a strong move? At least that’s what some friends from ria_rose’s thread are suggesting!
Anyway, that’s just something to think about. For now, I’ll be cheering for my one open trade on Cable. Fingers crossed for more dollar gains!