The HLHB is back to making profits on GBP/USD!
And did it just make MORE profits on USD/JPY when it was in a range?
2021’s numbers are in and I’m happy to report that the HLHB made profits from all three of the major pairs that I’m watching.
If you’ve just tuned in, know that the Huck Loves Her Bucks (HLHB) System aims to catch trends by using the 5 and 10 EMAs on the 1-hour charts of major dollar pairs like EUR/USD, GBP/USD, and USD/JPY.
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 as a parameter to weed out the fakeouts.
Check out a backtest that I did if you want to know more about the version that I’m using!
Take note that I only risk 0.50% of my account per trade.
Here’s a breakdown of how the system did for all of 2021:
EUR/USD
The party stopped in Q3 when EUR/USD saw more consolidation than trending action. Luckily, the tides turned again in Q4 with a 191-pip win even with just a 35% win rate.
By the end of the year, the HLHB closed 66 valid trades and bagged a total of 282 pips (+0.94%) from EUR/USD. Woot!
GBP/USD
Come through, GBP/USD!!!
Just when I thought that the HLHB charm is wearing off on Cable, the pair came through and made tons of pips from the system.
The trend-catcher snagged a cool 831 pips (+2.77%) after closing 64 valid signals.
Okay so maybe it was a last-minute thing. If you look closely, you’ll see that the bulk of the gains were made in the last quarter. But hey, a (big) win is a win, right? I’ll take it!
USD/JPY
The dollar had a FANTASTIC year against the yen and a bulk of the gains happened in Q1.
But did USD/JPY’s one-directional move translate to gains for the HLHB? I wish!
As you can see, the HLHB made the bulk of its gains in Q2 when USD/JPY was in a ranging environment. It also made pips in Q4 but it mostly just canceled Q3’s losses so it didn’t have much of an impact.
By the year’s end, the HLHB had gained a net of 339 pips (+1.13%) from 63 trades. Noice.
Aaaand that’s it for the numbers in this year!
What’s different about this year’s results is that the HLHB made pips even when the major dollar pairs were in ranges. Meanwhile, a trending environment didn’t guarantee profits for this trend-catcher.What factored in the HLHB’s success was the number of fakeouts. If there were fewer fakeouts to break ongoing trend trades, then I think the HLHB would have better numbers next year.
So, instead of wishing for trends, I’m going to keep my fingers crossed for fewer fakeouts in the year ahead. More one-directional trades would be appreciated for sure but I’d rather trade trends when I’m confident that the HLHB can take advantage of the full move.
What do you think? Will we see more one-directional trends for the dollar majors? The central banks have started tapering and tightening last year. Think that will affect general forex trends and volatility?
Thanks for tuning in this year and I hope you have a good year ahead!
You might also want to read: