It was bloodbath for the HLHB System this week, as it lost four out of five trades in the last few days. What’s up with that?!
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 told you guys about the HLHB System extending its winning streak by gaining 204 pips.
Well, it looks like the party’s over! As you can see, not only did last week’s open trades close in the red, but some of this week’s fresh signals also ended up with losses!
If you look closely, you’ll see that GBP/USD and USD/JPY actually showed decent intraweek trends in the last few days.
Unfortunately, it was EUR/USD – which had a choppier price action – that produced a valid signal. Specifically, it popped up two near the end of the week when traders went hot and cold over the dollar.
I only have one position to watch over as the new week begins. Think the dollar will extend its losses against the euro? Or is it time for dollar bulls to step up.
No matter what happens to the Greenback, I just hope that the HLHB is around to catch some of its moves!