HLHB Trend-Catcher System Update (April 26 – 30)

National Financial Solution > Forex Trading > HLHB Trend-Catcher System Update (April 26 – 30)


Open positions from the previous week did not do the HLHB System any favors in the last couple of days.

Check out how I closed with some losses after three closed trades!

Before we get to the details, 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 1-Hour Forex Chart
EUR/USD 1-Hour Forex Chart

EUR/USD traded in a tight range in the first half of the week but eventually saw action right before the Fed’s statement.

The euro benefited from an anti-dollar sentiment before some risk aversion eventually dragged EUR/USD to new intraweek lows. Yikes!

The HLHB had to close the previous week’s short position at a 51-pip loss when a long signal was validated. The open trade can only lose a max of 86 pips so that’s pretty promising.

GBP/USD

GBP/USD 1-Hour Forex Chart
GBP/USD 1-Hour Forex Chart

Like in EUR/USD, Cable also saw tight ranges until the second half of the week.

GBP/USD did not yield valid signals so the HLHB only had last week’s long trade to go with. Too bad it closed with a 50-pip loss when the pound hit the HLHB’s adjusted stop loss!

USD/JPY

USD/JPY 1-Hour Forex Chart
USD/JPY 1-Hour Forex Chart

The HLHB got lucky with USD/JPY, which traded in an uptrend when the trend-catcher system had a long trade on the pair.

The party stopped near the end of the week when USD/JPY yielded a valid short signal that forced the HLHB to close its long position for a nice 71-pip profit.

Here’s a summary of the open and closed trades from the last couple of days’ worth of trading:

Huck's Signature



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