The winning streak is still alive! The HLHB saw a couple of fakeouts, but was saved by one good trade from EUR/USD. Phew!
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 the start of September promises to be good for the dollar’s volatility.
Unfortunately, that didn’t exactly translate to tons of pips for this trend-catcher. In fact, I think we’re seeing some sketchy valid signals this week!
For now, I’m keeping my fingers crossed that this week’s open trades on EUR/USD, GBP/USD, AND USD/JPY all churn out profits somehow. I’ll be on my toes and reading Pip Diddy’s weekly forecasts for catalysts that might affect the dollae action!