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Back-to-back losses!

Though the HLHB toned down its losing trades this week, the trend-catcher still ended up in the red. A few open trades are looking good for the week ahead though!

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

There was only one valid trade from EUR/USD this week and it popped up just as the week was getting started.

I had to close last week’s open position for a 27-pip loss but it looks like it’s going to be worth it as EUR/USD downtrend enabled me to adjust my stops to a max of 72 pips in the coming days.

Not a bad deal, I think, especially if the euro extends its losses against the dollar next week.

GBP/USD

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

Cable fell sharply in the first half of the week though it did so in a staggered fashion.

Unfortunately, the HLHB got caught up in a lot of fakeouts while GBP/USD made its ranges so this trend-catcher ended up losing a net of 23 pips from closing four trades. Boo!

USD/JPY

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

Now this is some cool trend-catching!

I had to close last week’s trade when a new signal popped up but it didn’t have much impact on the HLHB’s P&Ls because (a) the trade closed at break-even and (b) the trade caught most of USD/JPY’s uptrend last week.

Right now, the trade is still open and can only lose a max of 39 pips in the week ahead.

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

Huck's Signature