The HLHB is back in positive territory! Check out how three trades resulted in an 85-pip win for this trend catcher.
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.
Unfortunately for trend-catchers like the HLHB, the dollar didn’t see a lot of one-directional moves last week.EUR/USD and GBP/USD didn’t move around a lot until near the end of the week. USD/JPY, meanwhile, stayed in a tight range after a bit of volatility spike at the start of the week.
Luckily, open positions from the previous week still worked to yield positive pips. While the HLHB gave up pips to close a Cable position at a loss, it also gained almost a hundred pips from closing TWO winning trades because of fresh signals. +85 pips (+0.28%) is nothing to sneeze at, right?
Looks like I’ll be starting the next week with a short trade on EUR/USD and another short on USD/JPY. Both trades have barely locked in pips, so it would be interesting to see if we see one trade gloriously gain pips while the other tanks.
Of course, I’ll be crossing my fingers for a scenario where both trades churn out wins. Let’s see what happens in the next few days!