Not this week either! There were a couple of new signals from GBP/USD but they turned out to be fakeouts so the HLHB clocked in another week in the red. Boo!
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/USD trended higher at the start of the week, which posed a problem for the short trade that the HLHB had going on from the previous week.
Fortunately, I was able to adjust the trade’s stop loss to a max of 72 pips before the euro popped higher. What’s more, the HLHB didn’t validate any signal in the second half of the week when EUR/USD traded on a tight range!
So, while there were no new signals from EUR/USD, the HLHB still ended up with a 72-pip gain from the pair. Yasss.
Cable traded on a range after one big upswing on Monday.
Unlike in EUR/USD, though, the HLHB actually validated some fakeouts this time. The three trades cost this trend-catcher a net of -124 pips including a 99-pip loss from last week’s open short position.
No new signal? No problem!
USD/JPY traded on a tight range for most of the week and only saw some action on Friday.
This means that the previous week’s long trade is still open and can only lose by less than 50 pips. Not bad, I think.
Here’s a summary of last week’s trades: