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Have you ever been so confident to do something and then it turns out that you were just plain…wrong?

That’s what happened to the HLHB’s open positions from the previous week! Check out how three trades sank the trend-catcher by almost 400 pips.

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 was on a relatively tight range for most of the week, which is likely way the HLHB only validated one signal from the pair this week.

Unfortunately, a short trade from the previous week had to be closed with a 36-pip loss when I opened the new position.

Because the new trade opened near the end of the week, the stop loss was only adjusted to a maximum of 143 pips.

GBP/USD

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

Cable’s one-directional move happened in the first half of the week. Too bad that the HLHB was on the wrong side of the move!

There were two more valid trades near the end of the week but they popped up while GBP/USD is in a tight range so I’m not too confident about their results. Heck, the first signal had already lost 97 pips on top of the 116-pip loss from the previous week’s position. Yipes!

USD/JPY

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

What’s worse than a fakeout? How about trading one right before a stronger move to the opposite side?

As you can see, the HLHB validated two signals this week. The first one popped up right before USD/JPY broke below a tight consolidation, while the second one was validated juuust before the week ended.

The losses probably would not have been so bad if the pair had not already seen a 119-pip loss from the previous week.

As it is, the HLHB sustained a whopping 394-pip dent from this week’s shenanigans.

Here’s a summary of last week’s trades:

Huck's Signature

I know I shouldn’t be emotional about trading losses but today I think I’ll deal with my disappointment by talking to people. Do DoorDash drivers count as friends?