InstaForex

August 23, 2021

HLHB Trend-Catcher System Update (August 16 – 20)

 A reversal of the previous week’s trends led to a lot of L’s for the HLHB this week.


Were your trend trades also in the red in the last couple of 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



EUR/USD started the week by making new intraweek lows almost every trading session.

The slow and steady burn didn’t do favors for the long EUR/USD position that I had left open last week.


In fact, it wasn’t until the HLHB validated a new signal that the bleeding stopped for the trend-catcher.


GBP/USD


Cable also saw a one-directional move for most of last week, which would’ve been a good thing if the HLHB wasn’t nursing a long position from the previous week.

There were no signals that were validated this week but I did end up closing the long trade for a 101-pip loss. Boo!


USD/JPY



USD/JPY’s price action may not be as one directional as EUR/USD and GBP/USD were, but the sharp downswing in the first part of the week was enough to do some damage to the HLHB’s coffers.

The system validated only one signal near the end of the week and, for now, the position can only lose a max of 119 pips. That’s something, I guess.