A pretty good week for this trend-catcher, as it managed to close not one, but two winners in a couple of days. Here are the deets!
But first, 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. 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 recently, 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.
Without further ado here are the results from the third week of October:
As you can see, I’ve closed both open trades from last week after EUR/USD and USD/JPY showed new valid signals.
Last week’s EUR/USD short ended with a 29-pip winner and, unfortunately, the system’s wide stop led to it losing most of its unlocked profits. Meanwhile, a new short trade has now been adjusted to limit its losses to 60 pips.
USD/JPY also closed its open trade to a 10-pip loss, which isn’t half bad considering that the next signal yielded a nice 77-pip win.
There are two trades open with adjusted stop losses but last week’s trading have yielded a net win of 96 pips. Pretty good, don’t you think?