This was a pretty good week for the HLHB, which saw enough winning trades to cap the week with a 146-pip win. Huzzah!
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/USDThe HLHB validated a long signal almost as soon as the week started, which enabled the system to close an open long trade from the previous week for a profit AND get in on EUR/USD’s uptrend in the first half of the week.
Was the HLHB right to validate a second signal? The short position that was opened on Thursday showed up just before EUR/USD traded in a tight range until the end of the week.
The short trade will remain open until next week but it can only lose a maximum of 145 pips due to the adjusted stop loss.
The HLHB started the week by validating a fakeout, but it more than made up for the mistake on Tuesday when it also validated a short signal right before Cable dropped like it was hot.
The short trade will remain open at the start of the week with its stops adjusted to reflect 67 pips that we’ve already locked in. Woot!
Much like GBP/USD, USD/JPY also saw a slow downtrend for most of the week.
If you don’t like seeing losses, then I suggest you look away.
Unlike in Cable, though, the HLHB actually stepped away from validating any crossover. It looks like I’m entering the week with no open position on USD/JPY!
Here’s a summary of the open and closed trades from this week’s trading: