Fakeouts got nothing on big gains! Thanks to one winner, the HLHB System was able to shrug off a couple of fakeouts to end the week in the green. 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 before, 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.
EUR/USD, GBP/USD, and USD/JPY all showed strong direction price action at one point or another throughout the week. Unfortunately, the HLHB System wasn’t able to catch some of the juicier moves.
In fact, last week’s open trade on EUR/USD closed as a loser while a new signal on Cable turned out to be a fakeout. Luckily, an open trade from the previous week closed with a nice +149 pips, which was enough to offset most of this week’s losses.
By the end of the week, the HLHB is up by a net +81 pips. Not bad at all!
Over the next couple of days I’ll be holding on to one open trade from each pair that I’m watching. I also see that ALL of them have a bullish dollar bias, so it would be interesting to see how these trades play out.
That’s it for me this week. Don’t forget to holler if you have any questions, okay? See ya in a few days!