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HLHB Trend-Catcher System Update (Sept 26 – Oct 1)

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One big fakeout dragged the HLHB in the red last week.

Good thing there’s a promising open trade on USD/JPY!

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 downtrend almost from the start of the week!

Unfortunately for the HLHB, a fakeout was validated right before the euro really got into the intraweek downswing.

I had to close the trade when price hit the adjusted stop loss of -148 pips. Boo!

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

Like EUR/USD, Cable also saw a big downtrend for most of the week.

Unlike in EUR/USD, though, the HLHB didn’t validate any fakeouts before the pair dropped. Instead, the two valid trades showed up near the end of the week.

The HLHB is now left with a trade that can lose a max of 47 pips after closing a 20-pip loss from the first valid trade this week.

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

USD/JPY didn’t yield any new trades this week but the dollar’s upswing to its 112.08 highs allowed the HLHB to lock in a 120-pip win from last week’s position.

Do you think USD/JPY will revisit the 112.00 area? Maybe even trade above the level?

My fingers are crossed for more volatility among the major dollar pairs!

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

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The Blogger Scientist is a "Medical Physiologist" and a "Financial Asset" Content Creator who aims at enlightening web reader on varying Financial Assets such as Stocks, FX, Crypto, MLM,. HYIP among others.

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