A pretty busy week for the HLHB System, which saw tons of new signals from EUR/USD and GBP/USD. How did they all add up? I have the numbers!
Before we get to the details, 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.
What a bloodbath! While the HLHB System churned out new signals, you can see that most of them came from fakeouts. GBP/USD, in particular, validated tons of trades even when the pair was in a tight range.
Not all hope is lost, though! EUR/USD’s open trade, which called for a short right before the pair dropped, can now only lose by a max of 32 pips.
As promising as the signal is, though, I’m worried that the pair would reverse next week before it gains any pips. In my Q2 2019 system review, I talked about closing trades at the end of the week to avoid holding on to trends that might not materialize when a fresh week comes along.
What do you think? Should I add back the closing of end-of-week trades to my parameters?