Closing last week’s signals cost the HLHB a few pips this week. Luckily, open trades coming into the next week look promising.
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 two closed trades that resulted in a net gain of 69 pips.Well, looks like the HLHB wasn’t able to replicate the slow and steady grind to the black this week.
New valid signals from EUR/USD and GBP/USD forced me to close last week’s open trades at 68 and 10-pip losses respectively. It also didn’t help that fakeouts popped up to dig the HLHB deeper.
This week’s open trades look promising, though! A short EUR/USD trade can only lose a max of 33 pips while a short Cable position can only lose 40 pips max. Meanwhile, a long trade on USD/JPY is getting there with its stops adjusted to a max loss of 138 pips.
Looks like I’m pro dollar going into the week! Are you looking at setups with similar biases?