Last week was a good week for the HLHB System, as it kept most of the fakeouts out and saw some pretty decent intraweek trend trades. Here’s how I traded a total of five trades from three major dollar pairs!
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 last week of October:
First of all, we can see that the system didn’t register a losing trade this month. Virtual high five!
EUR/USD was stuck in a tight range for most of the week, so it could have yielded tons of fakeouts if not for the ADX filter working effectively to weed them out.
GBP/USD didn’t see a fresh valid signal this week, but last week’s open position ended as a winner thanks to price hitting our adjusted SL.
Last but not the least is USD/JPY, which popped up TWO valid trades at a time when the pair is stuck in a tight range. All’s well that end’s well, though, since both trades were closed almost as soon as they were opened. Phew!
All in all this week’s trades contributed a cool +148 pips for HLHB’s coffers this year. Not too spooky for Halloween week, right?