Ranging conditions did NOT do this trend-catcher any favors last week.
Check out how a couple of trades resulted in a 64-pip loss for the HLHB!
Before we talk numbers, though, make sure to read all about my HLHB Trend Catcher System if this is your first time hearing about it!
Trend Catcher SystemBasically, 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 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/USD
EUR/USD slid on a slow downtrend on July 12 to 13 before the bulls and bears probably played on their PS5s and left the pair in a tight range until the end of last week.
The HLHB caught at least two fakeouts from the tight range. Luckily, an open trade from the last update canceled out most of the losses.
By the end of last week, the HLHB was break-even on EUR/USD. Phew!
GBP/USD
Cable saw more action than EUR/USD and USD/JPY, tbh. As you can see, it traded in a tight range before dropping by almost 300 pips last week.
Unfortunately, the HLHB invalidated any crossover and didn’t get in on the pound’s strong downswing. Maybe next time?
USD/JPY
USD/JPY was all over the chart in the last couple of days, which was probably why the HLHB also ended up with a lot of fakeout trades.
There were a total of three new valid signals in the last two weeks and if you add the 20-pip loss from the open trade that I had to close from the last update, then the HLHB had lost 64 pips from USD/JPY. Yikes.
