HLHB Trend-Catcher System Update (July 5 – 9)

National Financial Solution > Forex Trading > HLHB Trend-Catcher System Update (July 5 – 9)

You know what’s worse than a fakeout? THREE fakeouts that put your account in the red!

Before we talk numbers, 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 1-Hour Forex Chart
EUR/USD 1-Hour Forex Chart

EUR/USD traded in a wide range for most of the week, which is probably why the HLHB also caught not one, but TWO fakeouts in the last few days.

I had to close last week’s open trade for a small loss while the first signal also lost pips when a second valid signal popped up.

The HLHB is now nursing a long trade before a new trading week begins. Fingers crossed that the HLHB will actually make pips from next week’s moves!


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

Like EUR/USD, Cable was also pretty iffy about its intraweek trend. GBP/USD stayed near its intraweek lows before the bulls came out to play in the last few hours of the week.

Luckily, the HLHB didn’t validate any crossovers this time. I mean, can you see how many showed up while Cable was ranging tightly? Hopefully we’ll see more one-directional moves in the coming days.


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

Okay, this one stinks. USD/JPY traded in a slow but steady downtrend in the first half of the week, which would’ve worked well if the HLHB had not been nursing a long trade from the previous week. Yikes!

When the HLHB did validate a crossover, it was for a signal that went against the intraweek trend. Double yikes!

The long trade is still open and can now only lose a max of 139 pips. I’m cheering for the dollar to get some pips on the yen long enough for the HLHB to lock in some profits!

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

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