After a short break, let’s review the results of not one, but TWO weeks’ worth of trading for the HLHB System.
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.
It’s back to the red for this trend-catcher! And we don’t have far to look for the culprit.
As you can see, the system caught a lot of fakeouts in the last two weeks. EUR/USD actually saw decent intraweek trends but, unfortunately, the signals popped up while the pair was on a tight range.
Speaking of ranges, notice that USD/JPY was caught in a range so tight that there are more EMA crossovers than there are survivors in Avengers: Infinity War. The HLHB managed to filter out most of the fakeouts but a lot of them still went through. Boo!
Like EUR/USD, GBP/USD also saw strong trends throughout the week. Too bad it yielded NO valid signal for the HLHB!
This week I’m starting with an open EUR/USD short trade that’s almost (but not quite) in the green. I also have a short trade on USD/JPY that’s still around its open price.
The NFP report is around the corner so I think we’ll see more volatility in the next couple of days. I just hope the HLHB validates signals that are on the right side of the potential intraweek trends!