A bunch of fakeouts got nothing on a couple of solid trades! Thanks to some big wins, the HLHB ended another week in the green. Woot!
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 showed you guys how closing promising open trades from a previous week led to big wins for the HLHB.
Unfortunately, there were no mult-hundred-pip wins for the trend-catcher this time. Instead, a few decent wins all contributed to push the HLHB in the green.
USD/JPY had the choppiest price action and also had the most number of valid trades. Meanwhile, EUR/USD had two new signals though one of them turned out to be a fakeout.
Cable was the most interesting though, with two winning trades AND at least 315 pips locked in for next week’s profits. Not bad, huh?
While I’m pretty happy that the HLHB caught GBP/USD’s strong intraweek move, I’m still keeping close tabs on EUR/USD and USD/JPY’s signals in the next couple of days. Hopefully they’re positioned on the right side of the dollar’s trends this week.