Ranging conditions for EUR/USD and GBP/USD did NOT translate to good vibes for the HLHB last week.
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.
As you can see, EUR/USD traded within a 75ish-pip range for most of last week. Unfortunately, the 5 and 10 EMAs were all over the place at the time and it was easy for the HLHB to validate lots of fakeouts.
While the trend-catcher did close last week’s open trade for a profit and the last closed trade was positive, this week’s losses more than made up for those gains.
By the end of the week, the HLHB was down by a net of 26 pips from all closed EUR/USD trades. I’m keeping tabs on the short position I’m holding to start next week!
GBP/USD had a bit more volatility than EUR/USD, but its price action was still mostly range-ish.
Unfortunately, the HLHB validated a short signal right at Cable’s weekly bottom prices. It probably would’ve had a fighting chance but a second crossover was validated and I had to close the first one at a whopping 96-pip loss. Yipes!
Unlike in EUR/USD and GBP/USD, USD/JPY actually saw a trend this week.
But the odds were just NOT in favor of the HLHB! The slow but steady drip of the dollar did not cause enough ripples for the ADX, which remained below the 25 mark during the few EMA crosses that popped up.
For now, the HLHB added a 100-pip dent to its coffers. Maybe I should’ve just traded Bitcoin…
Anyway, here’s a summary of the trades: