Fakeouts, fakeouts everywhere! After crunching the numbers, I think it’s safe to say that this trend-catcher did NOT like last week’s tight ranges. 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 second week of November:
In last week’s update we left one EUR/USD trade on the table its losses limited to 86 pips. Well, the good news is that it didn’t hit 86 pips. Bad news? It was followed by TWO fakeouts and another fakeout in the making.
GBP/USD and USD/JPY didn’t close any trades during the week, but they do have one open trade to carry over to next week.
My fingers are crossed that these major dollar pairs finally see trending action! It’s been a while, after all.
How about you? Anyone here using trend-based trading systems and are killing it?