Another positive week for the HLHB System! Thanks to strong dollar trends, this trend-catcher was able to bag an additional 201 pips. Woot! Woot!
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.
In last week’s update we talked about how there are two open trades going into the week. Well, one of them worked out REALLY well!
See, the HLHB caught most of EUR/USD’s uptrend as it had an open long trade at the start of the week. And thanks to the next valid signal popping up when the pair started consolidating, the HLHB was able to maximize the intraweek trend.
Unfortunately, I can’t say the same for GBP/USD and USD/JPY’s similarly strong intraweek trends. USD/JPY even had an almost valid signal that would’ve worked, but stochastic had already crossed the 50.0 mark by then.
As in last week I’m starting next week with TWO open trades again. Specifically, I’m buying EUR/USD and shorting GBP/USD. Sounds like a win-win (or a lose-lose) situation! It would be interesting to see which signal yields more pips.
That’s it for me this week! Don’t hesitate to ask if you have any questions, mmmkay?