It was hit and miss for the HLHB System, which saw a large gain and a couple of open trades that got stopped out in the red. Here are the deets!
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.
As you can see, only GBP/USD had fresh signals for the trend catcher in the past couple of days. Fortunately, both lined up with last week’s bias and caught most of Cable’s strong uptrend.
That’s the good part. Last week’s open trades on EUR/USD and USD/JPY didn’t fare as well. See, EUR/USD popped higher when the HLHB had a short trade. On the other hand, USD/JPY’s strong uptrend didn’t fare well with last week’s short trade.
At the end of the week, HLHB gained a net of 99 pips (+0.33%) from closing four trades. Not bad at all, but could’ve been better if it hadn’t been on the other side of USD/JPY’s uptrend.
Over the next couple of days it looks like I’ll only be nursing a long GBP/USD trade. Think the pound’s rally still has juice? Or will the bears start to hack at the pound’s gains?
Fingers crossed that the HLHB’s fresh signals show up on the right side of the charts!