Down but not out! Thanks to a pretty successful signal on EUR/USD, the HLHB System was able to extend its winning streak a bit longer. Yay!
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.
Last week we talked about how promising trades that turned out to be winners REALLY made the HLHB’s week.
Well, it only took one this week. Specifically, EUR/USD’s long trade got cut off by a new valid signal and got capped with a 101-pip win.
While it’s only half of what we made in last week, I’m still not complaining. After all, it still canceled out the losses from two other signals that I’ve had to close over the past couple of days.
At the end of the day, a win is a win, right?
Next week promises to be an interesting one. You know why? For one thing, traders who took vacations might be back to Make Volatility Great Again.
In addition to that, we’ll be seeing some top-tier reports from major economies including the monster NFP report. Is that exciting or what!
The HLHB has two open trades going into the week and both of them would benefit from a bullish dollar. Think the markets will favor the Greenback during the NFP week? I sure hope so!