Aaaand the winning streak is up! Here’s how two losing big trades ended the nine-week winning streak of the this trend-catcher system. Boo!
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, the major dollar pairs saw strong, one-directional moves in the last couple of days. Unfortunately, open trades from the previous week were positioned on the OTHER side of these strong trends.
GBP/USD, for example, had a strong long trade going for it when a slow and steady drive lower produced a valid signal that forced me to close last week’s trade at a small loss.
USD/JPY, which had nursed a short trade for two weeks, also gave up pips when a new short signal cut the trade at -57 pips.
Last but not the least is an open EUR/USD long trade from last week that got cut when it hit its adjusted stop loss to the tune of -70 pips. Ouch.
Will last week’s pro-dollar trends continue, or will the the tides change for the Greenback? Looks like the HLHB System will be starting with a long GBP/USD and short USD/JPY this week.
My fingers are crossed that the system’s positions are on the right side of the dollar’s intraweek trends this time!