Hey, guys!
How’s your weekend? I hope you’re having fun and getting ready for the week ahead! As for me, I finally crunched the HLHB’s performance for 2016.
If you’re just tuning in, you should know that Huck Loves Her Bucks (HLHB) System is just a trend-following mechanical system that uses EMA crossovers and an RSI filter on EUR/USD and GBP/USD. Read more about the HLHB Trend-Catcher System if this is your first time hearing about it!
For those of you who’ve been tuning in for my weekly updates, here’s a summary broken down per pair:
P/L in Pips: 1,549
P/L in %: 5.88%
No. of signals: 524
Win rate: 18.32%
Average gain per winning trade: 43 pips (+0.17%)
Average loss per losing trade: 18 pips (-0.07%)
With market players focused on Brexit, commodities, and the U.S. elections, EUR/USD hardly saw strong trends throughout the year. In fact, the HLHB’s performance started getting less consistent (and less reliable) right after the EU referendum until the end of the year. Not surprising since speculations and conflicting headlines each day aren’t exactly trend-friendly.
Still, the HLHB managed to squeeze a total of 1,549 pips (+5.88%) from 524 signals. And that’s with only an 18.32% win rate! I guess it helped that the HLHB gained a lot more per winning trade than its average losses from fakeouts. Not bad, I think.
P/L in Pips: 3,927
P/L in %: 13.19%
No. of signals: 506
Win rate: 19.96%
Average gain per winning trade: 68 pips (+0.27%)
Average loss per losing trade: 28 pips (-0.11%)
Now this is serious trend-catching! Thanks to Brexit speculations and aftermath, HLHB caught a lot of strong trends from Cable throughout the year. Heck, there were only TWO losing weeks in Q1 2016! This helped a lot in cushioning fakeouts that evaded the RSI filter.
After 506 signals, the HLHB is up by a cool 3,927 pips (+13.19%) from the pair. And to think that its win rate is only at around 20%! One possible explanation is that the system saw an average gain of 68 pips from each winning trade while losses are limited to only an average of 28 pips per signal.
Overall I’m pretty happy with the system’s performance. Who wouldn’t be after ending the year positive for both pairs, right? But I’m thinking if it’s time to mix things up. Trading 1,000+ signals a year is no easy feat, yo!
Right now I’m looking for ways to make the mechanical system more sustainable. Maybe a shift to the 4-hour time frame? How about an indicator to better filter out fakeouts? Let me know if you have any ideas!
Here’s my Q3 2016 Trade Review and Reflections
Read the trading lessons I’ve learned in Q4 2016
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.