The HLHB System’s winning streak ended with a bang! Thanks to a combo of fakeouts, ranges, and wrong signals from the previous week, this trend-catcher system is down by hundreds of pips. Yikes!
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, I talked about the HLHB’s winning streak since the start of the year and how I hoped I hadn’t jinxed it by talking about it.
Well, it looks like I DID jinx it. Big time.
As you can see above, ALL THREE signals that I had open coming into the week ended in the red.
Not only that, but GBP/USD and USD/JPY traded on wide ranges, enough to trigger a “trend” signal when a strong candle pops up. EUR/USD was no help either, as it trended in a slow and steady manner that it didn’t trigger any new valid signal from the HLHB System.
Right now the HLHB is nursing one long trade on GBP/USD and a short setup on USD/JPY.
Will this trend-catcher regain its mojo next week? I sure hope so!