There were tons of fresh signals for this trend-catcher in the past couple of days, but it was an open trade from the previous week that put the HLHB in the green.
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.
Another week, another chance to score consecutive winning weeks for the HLHB?
Unlike in last week’s trades, a strong open signal from the previous week actually put the trend-catcher in the green this time.
As you can see, last week’s long EUR/USD trade yielded 71 pips and helped cushion some of the validated fakeouts that popped up from USD/JPY last week.
The next couple of days promise to be interesting especially since I’m starting the week with THREE open trades. Specifically, I’m selling EUR/USD and USD/JPY and then buying GBP/USD.
Think these trends will materialize now that the NFP report is behind us? What catalysts do you think can improve the odds of HLHB’s open trades?