Death by a thousand cuts! Well, at least that’s how it feels like when you get not one, not two, but THREE fakeouts throughout the week.
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.
Unlike in last week’s trading, price action was choppy enough for GBP/USD and USD/JPY so that the HLHB System didn’t get any new signals.
EUR/USD did see trending price action through the week, but its moves were also a bit choppy so that three out of four signals we got from the pair turned out to be a fakeout. Eww.
Will the fourth trade also leave the HLHB with losses? A you can see, the system only has one long EUR/USD trade and another short USD/JPY position going into the week.
Wait a minute. These biases are against my USD/JPY discretionary trade! Hmm. Sounds like I’m in for an interesting week!