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Close but not enough!

Thanks to a bunch of fakeouts from GBP/USD, the HLHB System capped the 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!

Trend Catcher SystemBasically, I’m catching trends whenever the 5 EMA crosses above or below the 10 EMA.

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 to weed out the fakeouts.

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

EUR/USD 1-Hour Forex Chart
EUR/USD 1-Hour Forex Chart

EUR/USD traded slowly but steadily lower in the the last couple of days, but it wasn’t until almost mid-week when the HLHB popped up a valid signal.

Good thing the signal was on the right side of the trend!

EUR/USD continued to make fresh new lows and kept the HLHB afloat long enough for the system to lock in at least a 22-pip win on its open trade. Phew!

GBP/USD

GBP/USD 1-Hour Forex Chart
GBP/USD 1-Hour Forex Chart

If you think something is too good to be true, then you probably haven’t seen the whole picture.

While the HLHB is scooping pips on EUR/USD, it also got caught in a bunch of fakeouts from Cable. Not surprising considering GBP/USD’s tight ranges in the last few days.

By the end of the week the system is down by a net of 26 pips from four closed trades though the open position can only lose a max of 42 pips. At least that’s something?

USD/JPY

USD/JPY 1-Hour Forex Chart
USD/JPY 1-Hour Forex Chart

USD/JPY also made decent moves in the past couple of days but it wasn’t until Friday when the HLHB validated a signal.

There were no open trades to close from the previous week so all we know from the HLHB’s performance on USD/JPY is that its current position can only lose up to 116 pips before it hits its adjusted stop loss.

Not a bad deal, I think.

Here’s a summary of last week’s trades:

Huck's Signature