Another positive week for the HLHB! Thanks to a couple of trades, this trend-catcher ended the week in the green. What’s more, it’s already got pips locked in for next 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.
Last week I told you guys how the HLHB had finally registered a win after weeks of staying in the red.We might not have seen similarly fantastic trades this week, but what open trades it had were enough to keep this trend-catcher system above water.
EUR/USD and GBP/USD both saw strong trends but their intraweek volatility was not enough to trigger new valid trades for the HLHB. Luckily, the GBP/USD trade from the previous week was positioned to take advantage of a downtrend. EUR/USD’s long trade had to give up tons of gains, though.
USD/JPY’s price action was a bit more choppy, but it was still strong enough to trigger TWO new valid signals for the HLHB.
Over the next couple of days I’ll be nursing a EUR/USD long trade that might just hit its adjusted stops; GBP/USD’s short trade that’s already hundreds of pips in the green, and a long USD/JPY trade that’s also showing promise.
That’s it for me today! How about you? How are your mechanical trades doing?