Another week in the red for the HLHB!
Thanks to tons of fakeouts, this trend-catcher saw more losses than gains in the last few days.
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/USDEUR/USD started inching higher at early in the week but it dropped to new intraweek lows before the bulls really stepped up their game and pushed the common currency on a slow but steady uptrend.
Unfortunately for the HLHB, there were no new valid signals throughout the week. Not only that, but the system was also nursing a short trade from the previous week when the uptrend started!
By the end of the week, the HLHB is down by a whopping 131 pips from last week’s EUR/USD shenanigans. Ouch!
Cable was less directional than EUR/USD but it did see strong enough moves to trigger MA crossovers and even pass the RSI filter.
The HLHB ended up validated THREE fakeouts! And while two of those three trades ended up with gains, the loss from the last signal was enough to wipe out the small gains from the winning trades. Boo!
USD/JPY also saw limited one-directional moves in the last couple of days but, unlike in GBP/USD, the HLHB only validated one signal this time.
The trend catcher had to close last week’s open trade for a 7-pip gain and is keeping the one and only valid signal still open to start the next week.
Will we see more USD/JPY weakness in the next trading sessions?
Here’s a summary of the open and closed trades from this week’s trading: