I hate to jinx the HLHB’s performance by saying something that rhymes with “twinning street,” so I’ll just tell you how the the system gained another 105 pips this week!
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.
USD/JPYIt was a relatively tame week for the major dollar pairs, as EUR/USD, GBP/USD, and USD/JPY failed to sustain the strong trends that we’ve seen in the past couple of weeks.
That didn’t stop the HLHB System from bagging pips though! As you can see, a new valid signal from USD/JPY meant that an open position from last week closed in the green.
Meanwhile, EUR/USD’s open trade from the previous week and GBP/USD’s one valid signal can now only lose less than 10 pips each in their worst case scenarios.
The next few days look interesting as the HLHB is nursing conflicting positions on the dollar. The system has an anti-dollar bias with a long trade on EUR/USD and a USD/JPY short, but it’s also selling GBP/USD at the beginning of the week.
Can the system make pips from even conflicting signals? More importantly, will new intraweek dollar trends pop up and make even more pips for the HLHB?
I’ll tell you all about how these trades turn out on next week’s update. For now, I hope you enjoy the rest of your weekend!