Hey guys! Now that we’re in the second half of the year, I got a chance to consolidate the HLHB System’s numbers for Q2 2021.
Overall, the results were a mixed bag of beans because there were improvements and setbacks in the performance.
If you’ve just tuned in, know that the Huck Loves Her Bucks (HLHB) System aims to catch trends by using the 5 and 10 EMAs on the 1-hour charts of major dollar pairs like EUR/USD, GBP/USD, and USD/JPY.
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 as a parameter to weed out the fakeouts.
Check out a backtest that I did if you want to know more about the version that I’m using!
For now, here’s a breakdown of how the system did in the second three months of the year:
EUR/USD traded in a slow and steady uptrend for most of April and then extended its move in May.
The euro saw a reversal in June but it also SAW lots of fakeouts.
Thankfully, the HLHB was able to jump on the euro weakness boat and bagged the last-minute trade that put the trend-catcher in the green for the quarter. It gained a net of 266 pips (+0.89%) by the end of June!
Much like the euro, Cable also enjoyed a slow uptrend for most of April and May.
Unlike in EUR/USD, though, the HLHB wasn’t able to get in on the fast and furious downtrend that happened in the first half of June.
This is probably why the HLHB’s win rate on GBP/USD fell from 50% in Q1 to 38% in Q2. It only gained 22 pips (+0.07%) after all the gains and losses were accounted for.
I guess it’s something?
USD/JPY dropped like a rock in April and then saw tight ranges and low key uptrends in May and June.
Luckily, the HLHB gained pips despite the tight price action. More importantly, it was able to keep a lid on the losses.
The trend-catcher gained a nice 335 pips (+1.12%) after getting almost the same numbers of trades as in Q1. Not bad at all!
That’s it for Q2’s update!
If there’s anything the HLHB’s Q2 performance has shown me, it’s that catching even one key trend can make a big difference to the bottom line.
Minimizing losses also remains a key part in making profits especially when trying to catch trends in a range-y environment.
The next couple of months could be tricky for trend-catchers unless we see fresh catalysts.
Do you think bias changes from major central bankers will be enough to push the major dollar pairs into trends? Or will new market themes pop up to move the majors around?