It’s another positive week for the HLHB! Thanks to a big winning trade, this trend-catcher was able to shrug off a small loss. I’ve got the numbers right here!
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.
EUR/USD and GBP/USD both churned out fresh signals this week even though both pairs saw relatively range-y price action. Luckily, a short EUR/USD trade from the previous week closed with positive pips and was able to lessen the impact of this week’s fakeouts.
USD/JPY, which DID see trending price action, didn’t see any new valid trades and actually traded against an open trade from the previous week. The pair has yet to hit last week’s adjusted stop loss (now at 109.78), however. Phew!
For now, the HLHB is up by another 33 pips despite the fakeouts. Will next week’s NFP-related shenanigans result in a busy (one-directional!) week for the dollar?
More importantly, will the HLHB validate signals that would go with these trends?
I sure hope so!