HLHB Trend-Catcher System Update (May 17 – 21)

National Financial Solution > Forex Trading > HLHB Trend-Catcher System Update (May 17 – 21)


Saved by one good trade!

The HLHB was able to withstand a bunch of fakeouts this week thanks to a big win from GBP/USD.

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

The HLHB didn’t have any open trade on EUR/USD at the start of the week, so it wasn’t until Friday when the trend-catcher validated a crossover.

It’s probably for the best that the HLHB didn’t have any trades on because EUR/USD traded on an 85ish-pips for most of the week.

For now, the HLHB is nursing a short trade with its stops adjusted to a max of 94 pips.

GBP/USD

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

Like in EUR/USD, Cable also traded in a range for most of the week. But unlike in EUR/USD, the HLHB wasn’t able to filter out most of the fakeouts.

The trend-catcher validated three signals this week! Luckily, a long trade from two weeks ago closed for a 101-pip profit and eased the sting of the losses from the fakeouts.

USD/JPY

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

Now this is trend-catching! Though USD/JPY had limited volatility, it was able to catch the pair’s lowkey downtrend near the start of the week.

The position closed for a 54-pip profit when a long signal was validated on Friday. Does this mean the dollar is ready for an uptrend against the yen?

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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