Another positive week for the HLHB! Though major dollar pairs stayed in Chopsville for most of the week, this trend-catcher was able to end the week in the green thanks to one trade.
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 from the charts above, the major dollar pairs mostly traded sideways for most of the week.
Fortunately for the HLHB, GBP/USD also had an open position that played well with GBP/USD’s slow but steady climb in the past couple of days.
A short signal ended the party, though, and forced me to close the trade with +163 pips. Still, it was enough to cover the fakeouts from EUR/USD’s signals. What’s more, it also marked a back-to-back win for the HLHB!
Looks like I’ll be starting next week with short trades on EUR/USD and GBP/USD. Think we’ll see strong, one-directional moves from the dollar?