Fakeout party! Though the HLHB validated tons of fakeouts, it was still able to end the week in the green.
How the heck did that happen?
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
Fortunately for the HLHB, it validated a long trade just before the pair hit its intraweek highs.
The long trade is still open for this week’s volatility, but it can only lose by a max of 57 pips. I’ll take it!
GBP/USD
Like in EUR/USD, Cable also traded in wide ranges for most of the week.
Unlike in EUR/USD, however, the HLHB validated three trades that didn’t really get anywhere.
By the end of the week, the HLHB had lost a net of 8 pips on the closed trades while the open trade can only lose 52 pips next week.
USD/JPY
The upswing was the most exciting part of the week, though, as USD/JPY went back into trading in tight ranges until the end of the week.
As you can see, the HLHB validated a whopping FIVE signals throughout the week. The HLHB lost a net of 28 pips on the shenanigans! Boo.
Here’s a summary of last week’s trades:
