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The performance of the HLHB Trend-Catcher 3.0, in a word, was AWESOME! It garnered a grand total of 1,004 pips. For a mechanical system, I’m truly impressed! Below is a rundown of its performance for the first quarter of 2012.

Date Triggered Trades Gain/Loss
1/13/2012 HLHB Weekly Update – January 13, 2012 -2 pips
1/20/2012 HLHB Weekly Update – January 20, 2012 +376 pips
1/27/2012 HLHB Weekly Update – January 27, 2012 +118 pips
2/3/2012 HLHB Weekly Update – February 3, 2012 +30 pips
2/10/2012 HLHB Weekly Update – February 10, 2012 -132 pips
2/17/2012 HLHB Weekly Update – February 17, 2012 +200 pips
2/24/2012 HLHB Weekly Update – February 24, 2012 +50 pips
3/2/2012 HLHB Weekly Update – March 2, 2012 +146 pips
3/9/2012 HLHB Weekly Update – March 9, 2012 +233 pips
3/16/2012 HLHB Weekly Update – March 16, 2012 +151 pips
3/23/2012 HLHB Weekly Update – March 23, 2012 -92 pips
4/2/2012 HLHB Weekly Update – April 2, 2012 -74 pips
Total +1,004 pips

Even though the system did very well, I shouldn’t let myself become lax. Mechanical systems tend to work on certain periods but fail when market conditions change. In order for the system to continue bringing in pips, I must be vigilant and tweak it when needed.

I’m also worried about the Relative Strength Index (RSI) condition. It’s almost irrelevant since it rarely filters the fakeouts. The system works because of how well the moving average crossovers complements the 50-pip trailing stop.

I would like to change it, but what indicator should I replace it with? I have tested both the Average Directional Index (ADX) and the Stochastic but both produced unfavorable results.

In any case, I am very glad that the HLHB Trend-Catcher 3.0 performed as well as it did. I’ll continue using it for the second quarter.



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