Faked out again! Thanks to a particularly disappointing signal, the HLHB System was set back by a net of 135 pips. What’s up with that?!
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.
In last week’s update we talked about how the tides might be changing for this trend catcher.
Unfortunately, the HLHB System didn’t get a chance to see back-to-back winning weeks as it saw a net loss of 135 pips from two signals. BOO!
As you can see, the bulk of the losses came from a valid GBP/USD signal that popped up just before the pair went in the OPPOSITE direction.
Not all hope is lost, though. Last week’s EUR/USD trade is still open and can only lose by a maximum of 69 pips. Meanwhile, a long trade on USD/JPY looks like it could get momentum.
My fingers are crossed that these two trades (and anything new that pops up next week) make up for this week’s losses!