HLHB Trend-Catcher System Update (February 10 – 14)

More misses than hits! Both EUR/USD and GBP/USD saw one-directional moves this week, but the HLHB ended up validating fakeouts instead. What’s up with that?!

Before we get to the details, read all about my HLHB Trend Catcher System if this is your first time hearing about it!

Basically, 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 were no open trades from EUR/USD last week so we only have this week’s signals to consider.

Unfortunately, the HLHB validated a fakeout right before the pair REALLY dropped near the middle of the week. What’s more, I had to close the losing trade to another valid signal!

The system is now bearish on EUR/USD with the stop loss only a couple of pips away from the max stop loss. Yikes!

GBP/USD

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

Unlike in EUR/USD, the HLHB’s valid signal on Cable was on the right side of the intraweek trend. A bit late, but better than on the opposite side, right?

  Forecast for USD/JPY on Feb 25, 2020 - Forex Alchemy

The system is keeping the trade open until another valid signal comes along, or until the targets are taken out.

USD/JPY

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

Volatility in a ranging environment can only mean fakeouts for a trend-catcher!

There are three valid signals from USD/JPY this week, which would’ve stung more if a long trade from the previous week had not yielded a nice 82-pip win. Phew!

Here’s a summary of this week’s results:

HLHB Trend-Catcher System Update (February 10 – 14)

Huck's Signature

  • 2019 HLHB Trend-Catcher System Results
  • Reviewing my 2019 Forex Trades

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