Tight trading conditions helped produce a lot of fakeouts for the HLHB this week!
Check out how much damage some validated signals have made in the last few days.
But 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!
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 last crossover passed muster, though, and the new valid signal meant that I had to close last week’s open position with a 36-pip loss.
The buy trade is pretty new but I’ve already adjusted its stops so that it can only lose a max of 128 pips in the next few days. Fingers crossed!
GBP/USD
What’s worse than a validated fakeout in a tight range? That’s right, TWO validated fakeouts!
GBP/USD also traded inside a 100-pip range last week but TWO crossovers managed to pass the HLHB’s filters.
Luckily, the first position was closed for a 22-pip profit and the remaining position can now only lose a max of 104 pips. I’ll take it!
USD/JPY
The HLHB validated two crossovers inside the range, though, which is how I ended up with a net loss of 85 pips on USD/JPY and an open position that has a max stop loss of 123 pips going into the week.
Here’s a summary of the open and closed trades from the last couple of days’ worth of trading:
