Fakeout alert! Thanks to a couple of fakeouts from different major pairs, the HLHB ended the week in the red. Boo!
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.
USD/JPYMuch like in last week’s trading, the HLHB saw a lot of fakeouts throughout the week. What’s up with that?!
As you can see on the charts above, both GBP/USD and USD/JPY actually had one-directional price action last week. Unfortunately, the valid trades popped up as they were consolidating, which put the signals on the other side of the intraweek trends.
This trend-catcher made a decent effort with a short trade on EUR/USD later in the week. Unfortunately, its (paper) gains weren’t enough to offset a fakeout seen from earlier last week.
For now, it looks like the HLHB is down by a net of 184 pips (-0.61%) from five total trades. A bit steeper than last week’s losses, but nothing to eat a pint of ice cream over. Maybe just a couple tablespoons for now.
I hope next week’s trade fare much better! I have two short trades, one from EUR/USD and USD/JPY each. It would be interesting to see which one would catch next week’s intraweek moves!