Back-to-back hit! Thanks to a new valid trade, I had to close an open position at a loss. Fortunately, this week’s new signals look promising. Here are the deets!
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.
Just last week I talked to you guys about the HLHB’s winning streak ending when a series of fakeouts led to a 160-pip loss.
Well, the losing days aren’t over just yet! As you can see, a new signal on EUR/USD meant that I had to cut losses on an open trade from the previous week at an 81-pip loss.
Luckily for the HLHB, its new signals look promising. That is, it’s positioned well for the possible continuation of EUR/USD’s downtrend and USD/JPY’s uptrend.
Question is, will last week’s trends extend to next week’s price action? Remember that we have both the FOMC statement AND the NFP reports coming up.
If next week’s catalysts extend the dollar’s current trends, then the HLHB just might get back some of the pips it had lost in the past two weeks. But if we see some serious reversals in the next few days, then I REALLY hope that we see other valid signals from this trend catcher soon.
How about you? Are you watching any dollar-related pair going into the week?