It was a pretty bloody week for the HLHB, which saw heavy losses from two major fakeouts.
Check out how the system took heavy hits from EUR/USD and GBP/USD!
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.
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/USDAs you can see, there were no new valid signals from EUR/USD this week.
Unfortunately, the long trade from the previous week was still open and had its stop adjusted to 1.1369.
As price hit an intraweek high of 1.1371, I was forced to close the position with a 139-pip loss. Boo!
Cable saw a decent intraweek trend in the last few days, which would’ve been nice if the HLHB hadn’t validated a SHORT signal right before the pound rocketed higher.
The system finally caught on with a valid long trade near the end of the week. Think Cable’s uptrend still has legs to fuel the pound higher?
The HLHB was busiest in USD/JPY with not one, not two, but THREE valid trades even before we saw a clear intraweek trend.The fakeouts didn’t do a lot of damage, though, and even adjusted the open trade’s stop loss lower to a max of 61 pips.
Overall, I’m pretty happy to see a couple of strong moves from the majors. that’s certainly better than the tight ranges we’ve been seeing lately. I just wish the HLHB is positioned on the right side of next week’s trades!
Here’s a summary of last week’s trades: