The stars (or in this case signals) are lining up for another good week for this trend-catcher system! Here’s what I’m excited about.
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.
The only open trade the HLHB had last week was a short trade on Cable and it bagged a couple of pips before a new signal popped up.
Luckily for this trend-catcher, it popped up a couple of valid signals before the Greenback showed strong trends near the middle of the week. Cable’s new signal, in particular, showed up pretty early to the party. It has already locked in 129 pips!!!
Over the next couple of days it would be profitable for the HLHB if the dollar encounters some losses. I’m excited for Pip Diddy’s weekly event forecasts to see if there’s a catalyst that could drag the Greenback lower!