It’s back to black for the HLHB! After a shaky first week, this trend-catcher is back to catching pips. Here are the numbers!
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.
We didn’t see a lot of one-directional trading as we did in the previous week, but that didn’t stop the HLHB from snagging a pip or two.
The system validated one new signal on all three major dollar pairs, which led to closing the two open trades that we had last week. Luckily, a win on GBP/USD was greater than a small loss on USD/JPY so the system still gained pips overall.
Looks like the HLHB is starting next week with mixed biases. It has a long trade on EUR/USD and USD/JPY and a short position on GBP/USD. Which trade do you think shows the most promise?