Just recently I’ve found out about HLHB system and it looked gorgeous in its simplicity.
So I’ve wrote an EA yesterday to just touch base and after few (hundred) backtesting / optimization rounds I came up with slight twist.
Below are key differences between current EA parameters and original HLHB:
- Trades are kept through the weekend - due to lazy coding
- Trades are NOT closed on opposite signal - due to lazy coding
- Take Profit (8x) and Stop Loss (2x) are calculated as multiplier of current ATR instead of fixed pips. It is amazing how having take profit improves the profitability. - multipliers selected based on backtesting / optimization
- EMAs are slightly faster = 4 EMA and 9 EMA - based on backtesting / optimization
- ADX threshold = 10 - based on backtesting / optimization
- 2% risk per trade - personal preference, for small account it should get away with 5%
Below testing results (apologies for polish version of MetaTrader )
It looks like HLHB gives best results only on EURUSD and even with over-optimized parameters other pairs just can’t catch up (If anyone would be interested I can followup with testing other pairs)
Things to check:
- Can fixed pips give better results than ATR (for Stop Loss / Trail / Take Profit)
- Can we “bet” more to get more? After winning trade we can take % of profit and add it to risked 2%. This way we increase position (profit potential) while still having the same protection of original account. Basically idea is that, if you take money from the house, you can risk it and in the long run it should make profitable systems more profitable
- Will additional trade filter improve the outcome? Ie. additional, slower MA to pick only BUY/SELL etc.
Can’t wait to put money in this machine
@Huck Thank you for this system, ideas and your posts
All comments and feedback are more than welcome!