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Attachments: Trading with Heiken Ashi and Heiken Ashi smoothed - Hybrid
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Trading with Heiken Ashi and Heiken Ashi smoothed - Hybrid

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  • Do you think this system is viable?
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  • #1
  • First Post: Edited Oct 26, 2011 8:35am Oct 23, 2011 12:19pm | Edited Oct 26, 2011 8:35am
I have been recently experimenting with a new system I "developed" and have backtested and has been working very well.

What will we be using? Heiken Ashi default indicator and also Heiken Ashi smoothed indicator.

Entry rule;

1) Trade only in the direction of HA Smooth (Blue - long, Red - short)
2) Entry is when HA default closes 1 bar below or above the HA smooth.
3) Exit is when HA default closes 1 bar in the opposite colour.
4) SL - 100 pips emergency stop - can be adjusted for different time frames.

From what I have seen, this strategy is a pip maker on 15M, 30M, 1H and 4H timeframes.

Please feel free to test and comment.

If any EA coders come cross this thread - please do shoot me an email or private message as I am seriously searching for someone to code this into an EA - to kill the emotional torture of this system even though it is highly lucrative! Thanks!

Please rate this thread if you like what you see - thank you fellow traders!
A trader must be humble - else the market would humble him.
  • #2
  • Oct 23, 2011 12:44pm Oct 23, 2011 12:44pm
Quoting Hedayat SM
I have been recently experimenting with a new system I "developed" and have backtested and has been working very well.

What will we be using? Heiken Ashi default indicator and also Heiken Ashi smoothed indicator.

Entry rule;

1) Trade only in the direction of HA Smooth (Blue - long, Red - short)
2) Entry is when HA default closes 1 bar below or above the HA smooth.
3) Exit is when HA default closes 1 bar in the opposite colour.
4) SL - 100 pips emergency stop - can be adjusted for different time frames.

From what I have seen, this strategy...

PLease post your vesrion of the HA smoothed. Thank you
  • #3
  • Oct 23, 2011 12:49pm Oct 23, 2011 12:49pm
Quoting aelimian
PLease post your vesrion of the HA smoothed. Thank you
Here you go! Feel free to back test or forward test

Happy pippin!
Attached File(s)
File Type: ex4 Heiken_Ashi_Smoothed.ex4   5 KB | 15,181 downloads
File Type: mq4 Heiken_Ashi_Smoothed.mq4   4 KB | 21,837 downloads
  • #4
  • Oct 23, 2011 12:54pm Oct 23, 2011 12:54pm
Quoting aelimian
PLease post your vesrion of the HA smoothed. Thank you
Refer to the attachments above "hedayat" is my other account which I was logged into. Sorry!
A trader must be humble - else the market would humble him.
  • #5
  • Oct 23, 2011 12:56pm Oct 23, 2011 12:56pm
here's a screenshot. combined with the TDI as confirmation and also as an exit indicator, your system looks very powerful. my chart has the smoothed as the green/salmon combo, and the default is the red/blue. the yellow line is a 5sma shifted 2
Attached Image (click to enlarge)
Click to Enlarge Name: chart1.gif Size: 25 KB
  • #6
  • Oct 23, 2011 12:59pm Oct 23, 2011 12:59pm
Quoting Repipula
here's a screenshot. combined with the TDI as confirmation and also as an exit indicator, your system looks very powerful. my chart has the smoothed as the green/salmon combo, and the default is the red/blue. the yellow line is a 5sma shifted 2
Haha I use TDI too! But still experimenting with TDI as I was using TMS for a long time but this 1 gives less false signals! Well the markets open soon and my live account tests begins soon!
A trader must be humble - else the market would humble him.
  • #7
  • Oct 23, 2011 1:08pm Oct 23, 2011 1:08pm
Anyhow, there are 32 traders viewing this fresh thread now - great job to myself lol!

Just wanted to highlight an issue that I found with the system and if any kind reader could help me with;

The issue is simply, as with any HA method, the chops. Anyone trying this method on visual backtest would have noticed that the chops could kill profits.

Is there any MA or other indicator that could filter the chops?

Looking forward to your replies guys - thanks in advance and for reading!
A trader must be humble - else the market would humble him.
  • #8
  • Oct 23, 2011 1:33pm Oct 23, 2011 1:33pm
Hedayat SM, it is a very interesting and a very unusual idea, at least I never heard of anything like this before.

About the chops: maybe the better way is not to add another indicator, but pay more attention to HA itself? I mean something like this: if the closed HA candle in question is more than 10 (or 12 or 15, you need to backtest) pips - than it is a valid entry, otherwise it is just a "noise". As far as I remember, somebody proposed this method in the TMS thread.
Gentlemen always play by the rules. If they can't, they change the rules.
  • #9
  • Oct 23, 2011 1:39pm Oct 23, 2011 1:39pm
Quoting Favorite
Hedayat SM, it is a very interesting and a very unusual idea, at least I never heard of anything like this before.

About the chops: maybe the better way is not to add another indicator, but pay more attention to HA itself? I mean something like this: if the closed HA candle in question is more than 10 (or 12 or 15, you need to backtest) pips - than it is a valid entry, otherwise it is just a "noise". As far as I remember, somebody proposed this method in the TMS thread.
Thank you for your valuable advise buddy. I will look into that - the 10pips idea seem viable but of course more pips should be used for bigger TFs I guess. Will backtest and forward test incorporating this idea.

Oh it was suggested? I missed it. Which post number? What was the outcome of the suggestion buddy? Would like to know and learn from it!

Thanks once again for the replies all
A trader must be humble - else the market would humble him.
  • #10
  • Oct 23, 2011 1:48pm Oct 23, 2011 1:48pm
Quoting Hedayat SM
Oh it was suggested? I missed it. Which post number? What was the outcome of the suggestion buddy? Would like to know and learn from it!
Hedayat SM, unfortunately I don't remember the post number, I tried to find it before writing my post but couldn't find it so far. All I remember is: somebody suggested it in the TMS thread either in May or in June, I don't even remember exactly how many pips he suggested, but the guy had some good statistics and he suggested different figures for H-1 and for H-4. Unfortunately nobody supported him...

If I find this post, I'll let you know in this thread.
Gentlemen always play by the rules. If they can't, they change the rules.
  • #11
  • Oct 23, 2011 1:51pm Oct 23, 2011 1:51pm
Quoting Favorite
Hedayat SM, unfortunately I don't remember the post number, I tried to find it before writing my post but couldn't find it so far. All I remember is: somebody suggested it in the TMS thread either in May or in June, I don't even remember exactly how many pips he suggested, but the guy had some good statistics and he suggested different figures for H-1 and for H-4. Unfortunately nobody supported him...

If I find this post, I'll let you know in this thread.
Alright buddy thanks for all the effort.

Quick question, do you find this system viable - given you're an experienced member in FF?

Also, would you be forward testing (live/demo?) this system? (More tests - more reliability)

Thanks buddy!
A trader must be humble - else the market would humble him.
  • #12
  • Oct 23, 2011 2:14pm Oct 23, 2011 2:14pm
Quoting Hedayat SM
Alright buddy thanks for all the effort.

Quick question, do you find this system viable - given you're an experienced member in FF?

Also, would you be forward testing (live/demo?) this system? (More tests - more reliability)

Thanks buddy!
Hedayat SM, good news: I found these two TMS posts I was talking about:
http://www.forexfactory.com/showthre...04#post4635104
http://www.forexfactory.com/showthre...67#post4635167

The guy was talking about the Synergy_APB candles, but as far as I understand, there is a very little difference between Synergy_APB and the original HA.

I think your system looks very promising. I can't start testing it right now live (I trade live two different systems and sometimes trade TMS too), but I'll probably create a small demo account and give it a try next week.
Gentlemen always play by the rules. If they can't, they change the rules.
  • #13
  • Oct 23, 2011 2:22pm Oct 23, 2011 2:22pm
Quoting Favorite
Hedayat SM, good news: I found these two TMS posts I was talking about:
http://www.forexfactory.com/showthre...04#post4635104
http://www.forexfactory.com/showthre...67#post4635167

The guy was talking about the Synergy_APB candles, but as far as I understand, there is a very little difference between Synergy_APB and the original HA.

I think your system looks very promising. I can't start testing it right now live (I trade live two different systems and sometimes trade TMS too), but I'll probably create...
Once again thanks for the effort buddy - will look at the two posts.

Also, for the vote of confidence on the system - thanks!

I hope you will give it a test and also post back the results, be it negative or positive

I will start live testing tomorrow during the london rush hour as well as NY

Keep the pips falling! Cheers!
A trader must be humble - else the market would humble him.
  • #14
  • Oct 23, 2011 2:25pm Oct 23, 2011 2:25pm
Quoting Hedayat SM
I hope you will give it a test and also post back the results, be it negative or positive

I will start live testing tomorrow during the london rush hour as well as NY
Gentlemen always play by the rules. If they can't, they change the rules.
  • #15
  • Oct 24, 2011 2:47am Oct 24, 2011 2:47am
People testing this system, please post your results and also note which TF this system works best in in your own opinion! Thanks a million!
A trader must be humble - else the market would humble him.
  • #16
  • Oct 24, 2011 3:08am Oct 24, 2011 3:08am
Quoting Hedayat SM
I have been recently experimenting with a new system I "developed" and have backtested and has been working very well.

What will we be using? Heiken Ashi default indicator and also Heiken Ashi smoothed indicator.

Entry rule;

1) Trade only in the direction of HA Smooth (Blue - long, Red - short)
2) Entry is when HA default closes 1 bar below or above the HA smooth.
3) Exit is when HA default closes 1 bar in the opposite colour.
4) SL - 100 pips emergency stop - can be adjusted for different time frames.

From what I have seen, this...
Buddy, please explain more details on entry rule.. thanks
  • #17
  • Oct 24, 2011 4:53am Oct 24, 2011 4:53am
Quoting tuantu
Buddy, please explain more details on entry rule.. thanks
Hey buddy,

As for entry, I would go only in the direction of HA smooth. Let say HA smooth is red, and HA default crosses down to become red also, I would take a short order. I will exit on the next opposite colored candle to appear on the default HA. Below I have attached a pic for reference on a few possible trades.

Arrow down - short order entry
Arrow up - close out short order
Cross - bad signal and order not taken
Attached Image (click to enlarge)
Click to Enlarge Name: untitled.JPG Size: 258 KB
A trader must be humble - else the market would humble him.
  • #18
  • Oct 24, 2011 5:08am Oct 24, 2011 5:08am
Quoting Hedayat SM
Hey buddy,

As for entry, I would go only in the direction of HA smooth. Let say HA smooth is red, and HA default crosses down to become red also, I would take a short order. I will exit on the next opposite colored candle to appear on the default HA. Below I have attached a pic for reference on a few possible trades.

Arrow down - short order entry
Arrow up - close out short order
Cross - bad signal and order not taken
How did you know that the cross was a bad trade and didnt take it ?

Thanks
  • #19
  • Oct 24, 2011 5:19am Oct 24, 2011 5:19am
Quoting piptastic7
How did you know that the cross was a bad trade and didnt take it ?

Thanks
Very good and valid question - respect that.

Ok how would I classify it as a bad trade?

Altho many trades do bounce back even if they look good, when I see a closed candle but closed in such a way that it forms a massive doji, I would consider it a weak signal as indecision is there and would probably be very risky.

What do you think about that idea? Please do share your ideas.

This way we could minimize losses
A trader must be humble - else the market would humble him.
  • #20
  • Oct 24, 2011 5:21am Oct 24, 2011 5:21am
Quoting Hedayat SM
Very good and valid question - respect that.

Ok how would I classify it as a bad trade?

Altho many trades do bounce back even if they look good, when I see a closed candle but closed in such a way that it forms a massive doji, I would consider it a weak signal as indecision is there and would probably be very risky.

What do you think about that idea? Please do share your ideas.

This way we could minimize losses
fair enough...

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