InstaForex

October 18, 2021

HLHB Trend-Catcher System Update (Oct 4 – 15)

 A couple of big wins offset a few fakeouts in the last few days.


Looks like the HLHB is off to a good start in Q4!


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 traded in a wide range for most of the week, which is probably why the HLHB caught a fakeout.

The second open position looks promising, though, as it appeared just before EUR/USD hit its intraweek bottom.


My fingers are crossed that EUR/USD extends its upswing long enough for this trend-catcher to lock in pips!


GBP/USD


Cable traded in a very tight range in the first week of October but then it exploded higher and traded in an uptrend in the succeeding week.

The HLHB got lucky from the move because it had an open long trade from late September and the second valid signal popped up above the first valid trade. HLHB gained 150 pips from closing two positions!


USD/JPY



The HLHB was most unfortunate on the yen because it caught not one, but TWO valid short trades while USD/JPY is trending higher.

The second trade is still open for now but unless we see a very strong countertrend catalyst, I’ll probably have to look at the next valid signal for profit opportunities.