HLHB Trend-Catcher System Update (Aug 30 – Sept 3)

Table of Contents

We saw relatively one-directional moves from EUR/USD and GBP/USD last week.

Unfortunately, the HLHB was on the wrong side of the trends this time around. What’s up with that?!

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!

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 50-ish pip range or so on Monday and Tuesday before the bulls decided to hate on the dollar and push EUR/USD firmly above 1.1800.

Unfortunately for the HLHB, it was nursing a short position from the previous week. Not only that, but it also validated a short signal right before the euro jumped to its intraweek highs.

For now, the HLHB’s selling bias remains alive and can only lose a max of 139 pips. I guess that’s something?

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

Much like EUR/USD, Cable also traded in a range before popping up and ending the week higher near its intraweek highs.

The HLHB did not have an existing short trade on the pound but it did validate TWO short signals throughout the week. Let’s see if the open position will lead to profits in the next few days!

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

USD/JPY was happy to maintain its tight ranges for most of the week. But that didn’t stop the HLHB from validating a signal!

The long trade showed up near the end of the week so it’s still too early to tell if the signal popped up at the right time. I guess we’ll know when we see how the dollar trades in the week ahead, huh?

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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