Trend-catching systems like the HLHB always need One Direction types of weeks, but this time the majors pulled a Brian McKnight and Started Back at (Negative) One.
I’ll explain in a bit.
Before we get to the details, read all about my HLHB Trend Catcher System if this is your first time hearing about it!
Basically, 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 HLHB did validate one long signal, though, which led to last week’s open position closing with a 49-pip profit.
For now, EUR/USD has risen enough so that the open long can only lose a max of 105 pips.
GBP/USD
Cable’s price action was even wackier than the euro as it went all over the charts. It didn’t even follow clear ranges!
The HLHB still validated one long trade, though, and thank goodness GBP/USD has popped up enough so that the long trade can only lose a max of 27 pips.
USD/JPY
The pair ranged so tightly you would think it was my lockdown pants. The HLHB got faked out (twice!) though, which led to a 50-pip dent that dragged the HLHB’s end-of-week numbers Back At (Negative) One.
Here’s a summary of the open and closed trades from this week’s trading:
