InstaForex

August 16, 2021

HLHB Trend-Catcher System Update (August 9 – 13)

 Barely in the green! Thanks to one or two decent trades, this trend-catcher was able to cancel out one big loss from the last few days.


Before I show you last week’s numbers, 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



The euro trended lower in the first half of the week so there was no crossover for the HLHB to sink its teeth into.

The action started mid-week when EUR/USD popped up a strong green candle and triggered a valid long trade.


For now, the long EUR/USD remains open with its stops adjusted to only lose a max of 82 pips.


GBP/USD


Much like the EUR/USD, Cable also traded a slow and sure downtrend in the first half of the week.

The second half wasn’t as clear trend-wise, however, which is why the HLHB caught three valid signals and is currently nursing a long trade that can only lose 104 pips max in the next few days.


USD/JPY



The HLHB caught USD/JPY’s early upswing and was also pretty early in identifying a mid-week reversal.

Unfortunately, a fakeout during a tight consolidation ruined the potential of what would’ve been an otherwise good short trade. Ouch!