I mentioned in my other thread about daily heiken ashi trading that I was looking into trading shorter timeframes. This system is the result of what I have been doing. It is different from the other system quite significantly but still uses Heiken Ashi as I believe they give a clearer picture of the market movement. This is still somewhat a work in progress as I haven't done extensive forward testing but let's just say it looks good. If you want to trade it start small until we get definite strike rate, etc numbers.
There are lots of threads about trading eurusd 1 min charts and they all more or less say the same thing, trade in the direction of the 1 hour/15 min and take lots of small wins rather than trying to hit a home run. This is merely my take on it and, I believe, a simplification of what is already here but not a simplification too far. It's nice and simple but works.
The basic system is to wait for a trend to develop on the 15 min chart in the same direction as the hourly. Once you have a trend in place then you go to the 1 min chart and buy/sell in the same direction taking 10 pip gains. The system consists of 2 moving averages and heiken ashi candles, that's it. It is an ma cross system of sorts but filters out which crosses you take rather than trying to trade every cross.
The setup... a 15 min eurusd chart with a 100 sma close, a 10 sma close and heiken ashi candles. I also add the candle time and a ma cross alert (all provided below) so you don't have to sit and watch.
Next add exactly the same to a 1 min chart but I also add a tick value indicator that I have modified myself and an EA that automatically places a stop loss and a take profit.
I watch these 2 charts side by side (in Metatrader go to 'Window' and 'Tile Vertically') so that you can get a picture of what is happening on both at the same time. What I am watching is the Heiken Ashi candles trending up and down. In a nice smooth down trend (the perfect world) you will see 10 red - 5 green - 10 red - 5 green, the price is zigzagging down the chart. Of course this doesn't always happen in real life but just be sure to look for a smooth trend on the 15 min chart. For a downtrend you want to see the 10 sma below the 100 sma and the gap between the two widening. See picture 1 below.
When the price closes below the 10 sma on the 15 minute chart then that is the signal to start watching the 1 min chart for shorts. On the 1 min chart I am watching the price action again waiting for nice smooth ups and downs. When I see a nice smooth pullback of green heiken ashi candles moving up (I like to see at least 4 or 5) then I am looking to sell the continuation of the downtrend. The signal to enter a trade is when the price closes below the 10 sma on the 1 min chart. Enter at the market as soon as the candle closes. The EA takes care of the stop and take profit. Then I watch the trade unfold. It can take a few minutes for the action to unfold but you have a good chance of your take profit being hit within 4 or 5 mins. If the trade does not go the desired direction and a green ha candle forms then I will exit the trade as soon as the top of that candle is breached to the upside. In this way it means it is unusual for your full stop loss to be hit, usually you can be out for 4 to 6 pips. See chart below for examples.
I recommend limiting the number of trades you take per day. It is better to take 1 or 2, or maybe up to 5 per day but wait for the best signals than to sit there all day and take every signal. I find that the first 1 or 2 trades after the 15 min signal are usually the best.
OPTIONAL: As we are using Heiken Ashi candles and you can experience some quite long runs even on 1 min charts it is an option that you may want to trail your stop rather than take profit at +10 pips. I would use the same method as above, when a green ha candle forms then watch like a hawk for the top to be taken out, if this happens then close straight away. Or just trail your stop a couple of candles behind the current one.
I have described all of this as a downtrend, obviously for an uptrend you just reverse this.
I have done my best to describe the system in words, there are charts below that may help to describe things better. It is possible that I have missed out some of the ideas I had when I started writing this but I will add them to this first post and post them in the thread if they come back to me. I believe I have got the basic system down pretty comprehensively.
Any further questions then of course ask. Also I'd like to say a big thank you to the people, whoever you are, who coded or otherwise supplied the indicators and the EA.
The EA and the tick value indicator in the next post.
There are lots of threads about trading eurusd 1 min charts and they all more or less say the same thing, trade in the direction of the 1 hour/15 min and take lots of small wins rather than trying to hit a home run. This is merely my take on it and, I believe, a simplification of what is already here but not a simplification too far. It's nice and simple but works.
The basic system is to wait for a trend to develop on the 15 min chart in the same direction as the hourly. Once you have a trend in place then you go to the 1 min chart and buy/sell in the same direction taking 10 pip gains. The system consists of 2 moving averages and heiken ashi candles, that's it. It is an ma cross system of sorts but filters out which crosses you take rather than trying to trade every cross.
The setup... a 15 min eurusd chart with a 100 sma close, a 10 sma close and heiken ashi candles. I also add the candle time and a ma cross alert (all provided below) so you don't have to sit and watch.
Next add exactly the same to a 1 min chart but I also add a tick value indicator that I have modified myself and an EA that automatically places a stop loss and a take profit.
I watch these 2 charts side by side (in Metatrader go to 'Window' and 'Tile Vertically') so that you can get a picture of what is happening on both at the same time. What I am watching is the Heiken Ashi candles trending up and down. In a nice smooth down trend (the perfect world) you will see 10 red - 5 green - 10 red - 5 green, the price is zigzagging down the chart. Of course this doesn't always happen in real life but just be sure to look for a smooth trend on the 15 min chart. For a downtrend you want to see the 10 sma below the 100 sma and the gap between the two widening. See picture 1 below.
When the price closes below the 10 sma on the 15 minute chart then that is the signal to start watching the 1 min chart for shorts. On the 1 min chart I am watching the price action again waiting for nice smooth ups and downs. When I see a nice smooth pullback of green heiken ashi candles moving up (I like to see at least 4 or 5) then I am looking to sell the continuation of the downtrend. The signal to enter a trade is when the price closes below the 10 sma on the 1 min chart. Enter at the market as soon as the candle closes. The EA takes care of the stop and take profit. Then I watch the trade unfold. It can take a few minutes for the action to unfold but you have a good chance of your take profit being hit within 4 or 5 mins. If the trade does not go the desired direction and a green ha candle forms then I will exit the trade as soon as the top of that candle is breached to the upside. In this way it means it is unusual for your full stop loss to be hit, usually you can be out for 4 to 6 pips. See chart below for examples.
I recommend limiting the number of trades you take per day. It is better to take 1 or 2, or maybe up to 5 per day but wait for the best signals than to sit there all day and take every signal. I find that the first 1 or 2 trades after the 15 min signal are usually the best.
OPTIONAL: As we are using Heiken Ashi candles and you can experience some quite long runs even on 1 min charts it is an option that you may want to trail your stop rather than take profit at +10 pips. I would use the same method as above, when a green ha candle forms then watch like a hawk for the top to be taken out, if this happens then close straight away. Or just trail your stop a couple of candles behind the current one.
I have described all of this as a downtrend, obviously for an uptrend you just reverse this.
I have done my best to describe the system in words, there are charts below that may help to describe things better. It is possible that I have missed out some of the ideas I had when I started writing this but I will add them to this first post and post them in the thread if they come back to me. I believe I have got the basic system down pretty comprehensively.
Any further questions then of course ask. Also I'd like to say a big thank you to the people, whoever you are, who coded or otherwise supplied the indicators and the EA.
The EA and the tick value indicator in the next post.
Attached File(s)
2MA Crossover.mq4
8 KB
|
848 downloads
HeikenAshiAlert.mq4
5 KB
|
763 downloads
P4L CandleTime.mq4
16 KB
|
724 downloads