Being on the wrong side of strong dollar trades didn’t pose too much trouble for the HLHB as it closed one trade with a nice 521 pips. Here’s what’s up!
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/USDEUR/USD was on a slow and steady climb for most of the week, which was unfortunate for the short trade that the HLHB had going on.
By the time the HLHB had validated a signal, the open short from a couple of weeks ago had already been cut off by an adjusted stop loss. Still, a 521-pip gain isn’t too bad, right?
There were no new valid signals from Cable this week but it did have an open short from the previous week.
Luckily for the HLHB, GBP/USD had fallen deeply enough first for the system to lock in 30 pips before the pair popped higher like there was no tomorrow. Phew!
USD/JPYFakeout alert! USD/JPY was on a choppy range in the first half of the week before the bears took charge and dragged the dollar MUCH lower.
Unfortunately, the last valid signal was a long trade on the pair, which resulted in a 115-pip loss despite the HLHB closing at an adjusted stop loss. Good thing there was a 521-pip win on EUR/USD, huh?
Here’s a summary of this week’s results: