Q4 was a busy trading quarter for EUR/USD, GBP/USD, and USD/JPY. Did the HLHB catch enough trends this time?
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!
Take note that I only risk 0.50% of my account per trade.
Here’s a breakdown of how the system did for all of 2019:
Though there were almost the same number of valid signals in Q4 as there were in Q3, the HLHB fared much better in catching pips and winning trades. Most of the stats improved including the win rate and average wins per trade.
Unfortunately, the wins in Q4 can’t make up for the losses in Q1 and Q3 so the HLHB ended the year with 127 pips (-0.43%) in the red after 61 valid signals on EUR/USD. Ouch!
Much like in the previous year, the HLHB bagged most of its pips from Cable. This time around strong intraweek trends on GBP/USD helped the trend-catcher lock in 759 pips (2.53%) just from 15 valid signals. And that’s with a poor win rate!
The strong gains from Q3 and Q4 helped push the HLHB’s numbers on Cable to a whopping 1,702 (5.67%) for the year. Not bad for 59 trades, I think.
Though USD/JPY has seen its share of intraweek trends in the last three months, the HLHB only validated 11 signals and won 55% of them. Average wins were higher than losses in Q4, though, which is why the system is still in the green for the pair.
Like in EUR/USD, the gains in Q1 and Q4 were not enough to offset the losses seen in Q2 and Q3. The HLHB ended up losing a tiny 56 pips (-0.18%) for the year. Soooo close!
That’s it for the numbers in this year!
One thing I’ve noticed is that there’s no shortage of strong intraweek trends among the pairs that I’m watching. Unfortunately, the HLHB did miss a couple of strong trends that would’ve yielded tons of pips.
It also didn’t help that trends had changed almost every week or so this year. This was disadvantageous to the HLHB, which holds on to a valid signal until price hits an adjusted stop loss or a new valid signal comes along.
Got any advice on how I can tweak my parameters to catch more of the sudden intraweek trends? Should I use other indicators? Time frames? Currency pairs?
Any help would be much appreciated!