Hiya, folks! Can you believe it’s already Friday?!
Since I’m staying on the sidelines from discretionary trading while Trump officially becomes POTUS, I’ve decided to make good on my wish to tinker around with the HLHB System.
If you’re new to the club, all you need to know is that the Huck Loves Her Bucks (HLHB) System is a mechanical system that aims to catch trends by using EMA crossovers and an RSI filter.
Read all about the HLHB Trend-Catcher System if you want to know more about its entry and exit rules!
As you know, the HLHB System wasn’t all bad in 2016. In fact, it was pretty profitable. Problem is, it threw waaaaay too many signals for me.
Last year alone, I got more than a dizzying 500 signals from EUR/USD and GBP/USD. Each!!! It reminded me of how my grandma kept on giving me food over the holidays, tbh. You know that she means well and that it costs little to say yes, but there are times when you just want to say “Stop iiiiiit! My tummy surrenders!”
This is why this year, I’ve decided to tweak the HLHB to see if I can dial the signals down to a more sustainable pace.
I’m starting with the original rules but I’ll apply them on the 4-hour time frames instead of the 1-hour charts. The original Amazing Crossover System where the HLHB is based specifically called for the 1-hour time frame, so this switch to a higher time frame should be interesting.
I’ll also add USD/JPY into the mix along with EUR/USD and GBP/USD and see if I could switch up the pairs that I’m watching. USD/JPY has shown a lot of big trends over the past couple of months, you see, and I’d hate for this system to miss any of the good moves.
That’s it for my update! I’ll backtest the HLHB on the past couple of trading quarters and let you know of the results next week.
Wish me luck!
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