HLHB Forex Trend Catcher: EMA, RSI, ADX, and Trailing Exits

Summary

The HLHB system seeks short-term trends with a fast and slow EMA crossover, an RSI crossing the midpoint in the same direction, and an ADX threshold to screen for trend strength. It describes long and short entries, exits on an opposing signal, trailing stops and profit targets, and a scheduled close before the weekend. The stated settings use five- and ten-period EMAs, a ten-period RSI, and a 14-period ADX with a minimum reading of 25.

The document gives no strategy performance statistics. Its published test is on BTC-USDT futures, despite the discussion centering on major forex pairs, and spans roughly a year using daily strategy bars with hourly base data. The prose describes RSI on median price, while the provided code calculates it from closing prices. The fixed exit distances may not adapt to changing volatility, and crossovers can whipsaw in ranges. These differences and limits call for careful validation before treating the description as evidence of live performance.

Key ideas

• Entries require an EMA crossover and an RSI midpoint cross in the same direction, with ADX above a threshold.
• The system exits through trailing and profit-target orders, an opposing signal, or a scheduled weekly close.
• The prose targets short-term forex trading, while the published test uses BTC-USDT futures.
• The source uses closing prices for RSI despite the prose specifying median prices, and no performance results are reported.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.