No fresh signals from the HLHB this week, which means that the HLHB only had last week’s signals to play with over the past few days.
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 mentioned in last week’s update, the HLHB’s THREE long trades coming into the week could be a win-win or lose-lose siatuation.
Unfortunately, the odds turned in favor of losing two open trades this week. While EUR/USD, GBP/USD, and USD/JPY all showed one-directional trends during the week, they also happened so gradually that the pairs didn’t trigger the HLHB’s validation parameters.
As you can see, the system is left with a total loss of 295 pips after losing 140 pips from Cable and 155 pips from USD/JPY.
With no new trades to manage, it looks like I’ll only be nursing a long EUR/USD coming into the week. Think the pair will pop up enough to erase this week’s losses? Or is it only a matter of time before EUR/USD also dips to its adjusted stop?