HLHB Trend-Catcher System Update (June 14 – 18)

National Financial Solution > Forex Trading > HLHB Trend-Catcher System Update (June 14 – 18)


It was a GOOD week for the HLHB System, which locked in pips on two open trades and closed two trades in the green.

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 absolutely exploded in the dollar’s favor when the Fed hinted of tapering AND tightening in its latest FOMC meeting minutes.

Luckily for the HLHB, it had a short position open from the previous week.

The short trade is still open for now but the HLHB has managed to lock in at least 169 pips from last week’s sharp downswing. Not bad, I think.

GBP/USD

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

Much like the EUR/USD, Cable’s price action was practically dead until the FOMC event. The HLHB also had a short trade going on from the previous week but the HLHB validated another short just before the sharp move lower.

Not only has this trend-catcher bagged 69 pips from last week’s short signal, but it has also locked in a nice 143 pips from this week’s downtrend.

USD/JPY

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

USD/JPY saw more pre-FOMC action than EUR/USD and GBP/USD and the HLHB System was positioned well to catch most of its moves!

See, a long trade from the previous week turned into an 86-pip win when a fresh long signal was validated. And, thanks to USD/JPY’s upswing, the new trade can only lose 118 pips max from next week’s price swings. Woot!

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

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