Another fakeout week for the HLHB! Thanks to a lack of strong, one-directional movement, our trend-catcher was often on the wrong side of trades. Here are the deets!
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.
As you can see from the charts above, the major pairs traded on tight ranges for most of the week. In EUR/USD and GBP/USD’s cases, prices didn’t even move in one direction!
This led to tons of fakeouts that the HLHB system only partially avoided. Despite its fakeout filters, a couple still got through and did some damage on my account.
By the end of the week, the HLHB was down by 121 pips (-0.40%) from last week and this week’s signals. Boo!
It looks like the HLHB System is favoring the dollar in the next couple of days. I’ve got a short trade on EUR/USD and a long trade on USD/JPY and both of them are only a few pips away from their initial stop loss levels.
The HLHB has a lot to make up for! I hope we see some strong trades to offset this week’s losses.