Aaand we’re back in the black! There weren’t a lot of super hot trades from the HLHB this week, but one or two valid signals were enough to push the system’s results in the green.
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.
In last week’s update I showed you guys how a bunch of strong moves in the opposite direction of the HLHB’s open trades led to a 295-pip loss for the trend-catcher system.
Luckily, we didn’t see a repeat this week. See, while the one-directional trends on EUR/USD and GBP/USD were staggered, one valid signal still managed to put some pips into the HLHB’s coffers.
USD/JPY has no new valid signal, though, so it looks like I’ll be starting next week with only a short trade on EUR/USD and one long trade on Cable. Pretty interesting considering that both pairs had moved in the same direction last week.
Looks like a sure win-lose situation, doesn’t it? Well, maybe the euro or pound could set their own trends next week.
I hope they turn in favor the HLHB’s current trades if/when we do see EUR/USD and GBP/USD trade in different directions!