A pretty strong week for the HLHB System, which saw a 345-pip win (+1.15%) from three closed trades. What’s more, the remaining trades also look promising!
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.
In last week’s update I told you guys about how HLHB’s open trades were positioned for winning trades going into the week.
While I anticipated winning trades, I didn’t see how well those trades would do. EUR/USD’s closed trade, for example, closed with 127 pips on a new signal.
Ditto for Cable, which closed last week’s trade with a cool 201 pips. USD/JPY also did pretty well considering that it hadn’t locked pips by the end of last week.
Can the trading system get away with positive pips for another week? I’m watching three open trades starting tomorrow and, while I haven’t locked pips yet, it looks like they’re positioned well enough to catch trend continuation scenarios.
I guess it all depends on how the dollar trades next week, huh? Which way do you think the dollar will go? More importantly, can it sustain intraweek trends long enough for trend-catching systems like the HLHB to make serious pips?