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Attachments: HA T3-1 System
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HA T3-1 System

  • #61
  • Feb 3, 2010 10:24pm Feb 3, 2010 10:24pm
Quoting AndsX
Is this a valid sell on EU. H4 shows in down trend marked by Red vertical line in both the charts. We had a Sell trigger in M30 after some time marked by yellow line.

My only concern is that it came long after the EU H4 have a signal but as per rules is this valid?
The way I would explain this, this it not only valid but actually the whole intent of the system.

As with any system that trades short-term retracements of long-term trends, you look at the higher timeframe first (H4 in this case) for a strong trend to establish. Establishing direction gives you an edge by reducing the noise.

You than utilize the noise that you observe in short-term market swings by looking for counter-trend retracements on the lower timeframe (M30) and a reversal back into direction of the trend. While you don't get to ride the full trend as seen on the higher timeframe, you take fairly secure trades for portions of it, and will often be able to profit from the trend more than once.

Naturally, a reversal in overall trend will show earlier on the lower timeframe. In other systems you might think about taking a counter-trend trade (for example, center-of-gravity approaches do that and bet on a reverse to the mean), but in the system in this thread you would wait for the new trend to be fully established on the higher timeframe and then additionally wait for the first reversal on the lower timeframe -- meaning you don't jump in when the H4 changes, but wait for the M30 to swing once.

If you feel you're missing out on a good trading opportunity, you could always drop down to M15 or M5 to get in quicker, but the edge of the (any!) system is to have tried-and-tested rules and stick to them, not to opportunistically adjust them -- that would be fully discretionary trading on price action, which is a valuable approach too, but not mechanical trading as described in the system.

One more thing that may have made you ask the question is about exits. In the thread so far, a couple of approaches have been mentioned. Use a hard stop at the recent swing high/low, trail profits, etc. Unless your stoploss is hit, I think there is no need to exit on each and every reverse signal on the M30, as this would pervert the intentions of the system and make the shortterm noise work against you again. I would exit if the H4 changes direction while the trade is still on, or if both signal (Heikin-Ashi) and filter (W-LNX CCI) line up in the opposite direction on the M30.
  • #62
  • Feb 3, 2010 11:02pm Feb 3, 2010 11:02pm
hey tonyb123 thanks for sharing your system! just wanted to know, the trend lord indicator is a momentum indicator correct? red means momentum is slowing down and blue means momentum is increasing correct? as far as the trend goes, do youlook at price or the a.o indicator to tell which way the trend is going? thats seems to be my confusion, second i dont understand why the emas are their if on the 30 minute chart all your looking for is a confirmation of the 0 line on the entry cci indi to match the color of the 4h trend signal? sorry for my many questions.
  • #63
  • Feb 4, 2010 12:43am Feb 4, 2010 12:43am
Hi,

I've been approached through a private message whether I could help explaining the AO and the alert/mail functions in this system. Since I typed it once I thought I could also paste and share it here.

*********
CAVEAT: I have not developed this system and am in no way trying to superimpose my personal interpretation. In no way am I evaluating other possible interpretations of the indicators, condititions that should be met etc. I only felt compelled to share below comments with the community because I have been directly asked by one member for them, and because I see a lot of potential in the approaches discussed in this thread.
*********

The alert on MT4 is generated when the Heikin-Ashi indicator changes direction. When it turns bearish, its color turns read; when bullish, blue. The AO indicator is set for the same colors, red is bearish, blue is bullish. For a strong bearish signal on the AO it should be red and in negative territory; likewise, for a strong bullish signal AO would be blue in positive territory. Weak signals that are better ignored would be blue/negative and red/positive. They only tip you off to possible trend reversal.

So you can interpret a "sell" alert to be red and a "buy" alert to be blue.

Whether you use the e-mail function or not is entirely up to personal preference. I find it a mess to configure MT4 to enable mailing, so I stick to watching my screens. You don't have to use either template, actually, instead you could go into the Heikin-Ashi properties and toggle mail on ("true") or off ("false"). Equally, if you toggle alerts on or off, you will display or hide the arrows. Just right-click on the indicator and experiment until you have a screen setting that works for you, then save that as your template.

The templates that were attached are really just for reference. That's the way Tony likes to use his own system. If you apply it to your own trading, I suggest you evaluate every single element whether to use or not.

To sum up also for reference only how I would apply the system, I would use the long timeframe (H4) to establish trend. The condition I want to see met is that Heikin-Ashi and AO aline perfectly (e.g. red H-A and red, negative AO for short trades, blue H-A and blue, positive AO for long trades). I personally do not use alerts or mails on the long timeframe, but check visually. The Trend-Lord indicator I frankly don't understand very well, so I keep it on the screen for further confirmation only; for example, if AO has just crossed the zero line and I'm not sure about the momentum of the trend yet, the Trend-Lord could help me confirm.

I would then look for entries on the short timeframe. For that I would turn on the alert function for Heikin-Ashi; when an alert in the direction of the above trend is triggered, I would then confirm that the bar color of the W-LNX CCI indicator is also showing red for short or blue for long. Alternatively, after an alert on Heikin-Ashi where the W-LNX bar is showing the opposite color, I would consider entering when the W-LNX changes into the direction of the overall trend. I find looking at AO and Trend-Lord on the fast timeframe to be too much information.

So once all four conditions are met (two each on the slow and the fast timeframe; order of the indicators turning on each timeframe doesn't matter to me, but slow timeframe must show trend first and fast timeframe align consequently), I would enter the trade. This does not generate a great many signals for each individual pair, so it makes sense to monitor a large group. Just be careful not to enter into too many trades on correlated pairs in order to keep risk under control. I would rather not be trading AUDUSD and NZDUSD at the same time in the same direction, or EURUSD and USDCHF in opposite directions; their risk profiles are similar (inverted in the latter case).

The moving averages can be used to manage the exit, but just as with position size your exit rules really depend on your risk tolerance, so I strongly encourage you to come up with your own answers for this portion.

Hope this helped. My explanations had to be somewhat generic because I have not developed the system myself, but I've tried to answer from experience about the indicators used and the general approach to multi-timeframe trend-following systems.

Cheers,
Jesper
  • #64
  • Feb 4, 2010 3:48am Feb 4, 2010 3:48am
Hello tony

Thanks again

But so as i understand an fast rull is that if the A.O indicator is below zero and the other conditions are met we enter only short,the color dont have to be red. we dont enter any long postion tell the A.O indicator is above zero.

And if the A.O indicator is above zero and the other conditions are met
we enter only long ,the color dont have to be blue.Is this right?

Oke but wath about the trend lord have this to be red for only short or blue for only long and small or long bars ?
so as i understand for it is a good short wen the trend lord have a big red bars,and good long wen the trend lord have a small blue bars.
is this right?

Oke for now no more quistions

I hoop i hear from you soon.

Greet you,

Yoenes
  • #65
  • Feb 4, 2010 6:41am Feb 4, 2010 6:41am
can someone please fix this indi. when alerts are turned to false the arrows disappear.thanks
Attached File(s)
File Type: mq4 Heiken_Ashi_Ma_T3-1.mq4   7 KB | 599 downloads
  • #66
  • Feb 4, 2010 7:56am Feb 4, 2010 7:56am
I have attached a screenshot so you can uderstand what I mean.

Please look at my notes under the AO. All the pics of the AO look like this to me one side is down and the other side is up. The zero line goes through the middle.
So please tell me what I am doing wrong because it's clear that everyone else only sees one side.
Thanks this is driving me nuts
Randy
Attached Image (click to enlarge)
Click to Enlarge Name: tONao.jpg Size: 129 KB
One good turn gets most of the blankets.
  • #67
  • Feb 4, 2010 8:18am Feb 4, 2010 8:18am
Quoting randy1953
I have attached a screenshot so you can uderstand what I mean.

Please look at my notes under the AO. All the pics of the AO look like this to me one side is down and the other side is up. The zero line goes through the middle.
So please tell me what I am doing wrong because it's clear that everyone else only sees one side.
Thanks this is driving me nuts
Randy
Randy the AO in the screenshot you posted looks right. There is always an upside and a down side of the 0 line. When it is above the zero line it indicates that there is an uptrend and obviously when it crosses below the zero line it indicates a down trend.

Hope this helps a bit.

Wes
Attached Image (click to enlarge)
Click to Enlarge Name: 04-02-2010 04-15-26 PM.png Size: 60 KB
  • #68
  • Feb 4, 2010 8:36am Feb 4, 2010 8:36am
hi - i have been watching this thread with interest.. i will hopefully get around to loading up with the indis and tpl and give this a whirl.

i'd like to say thankyou to tony for sharing and also to jesperweber for re affimring the setups and indis use.. cheers

tony - if you are here, do you have a breakdown of results at all and the period you have been using this methd for? you mentioned 400 - 700 pips daily which i find absolutely mind blowing

jesperweber - have you gad similar results to tony? i understand that we wait for a trend to be ruly established, but my worry always with established trends is that like you say you may have missed the boat whe it had its engines on and the trend wll at some point run out of steam and will force the boat to use its sails.... which is why i'd like to know how consistent profits if possible are and over what kind of period - this will hopefully help alter my blinkered thinking

lastly re the pairs.. is there a listing anywhere or maybe i could cheekily ask if you could help with drawing up a shortlist of the most profitable pairs and which not to trade simultaneously or at all against another pair using this method (or general in i guess)

thanks

gl all
  • #69
  • Feb 4, 2010 8:42am Feb 4, 2010 8:42am
Quoting randy1953
I have attached a screenshot so you can uderstand what I mean.

Please look at my notes under the AO. All the pics of the AO look like this to me one side is down and the other side is up. The zero line goes through the middle.
So please tell me what I am doing wrong because it's clear that everyone else only sees one side.
Thanks this is driving me nuts
Randy
Randy,

You're looking at it correctly. The AO oscillates around the zero line, with positive reading above the line indicating an uptrend and, vice versa, a negative reading below the line indicating a downtrend.

The x-axis is the timeline, so you find the current reading on the extreme right, where the candle is showing you the current price.

Where you typed "up" price was in an uptrend, then it changed to a downtrend, which you identified by typing in "down". This was confirmed by the Trend-Lord indicator changing from a bullish blue to a bearish red.

Everything looks good here...
  • #70
  • Feb 4, 2010 8:51am Feb 4, 2010 8:51am
Quoting naboo
jesperweber - have you gad similar results to tony? i understand that we wait for a trend to be ruly established, but my worry always with established trends is that like you say you may have missed the boat whe it had its engines on and the trend wll at some point run out of steam and will force the boat to use its sails.... which is why i'd like to know how consistent profits if possible are and over what kind of period - this will hopefully help alter my blinkered thinking

lastly re the pairs.. is there a listing anywhere or maybe i could cheekily...
Hi,

I trade similarly, often using Heikin-Ashi across timeframes to look for trends, retracements and entries. So while my style is close, I'm not fully using the system described by Tony. This being said, I believe the Heikin Ashi is a powerful trend indicator -- you will find it in many systems, one well-known one the Synergy approach, just to name one.

If I use different timeframes to establish trend on the high timeframe and entry on the lower one, I would often rely on just one identical indicator lining up across those timeframes. But for filtering/confirmation purposes, in my experience AO is very reliable for longer timeframes, and CCI (what the W-LNX is) works well with quicker settings.

What's the problem if you miss a boat? Just take the next one to come along. Here's a quote that I like: "I'd rather be out of a trade wishing I'd be in, than in a trade wishing to be out." Let the market come to you, don't chase it. With enough pairs to trade, there will be setups.

To find correlation tables (and also look for inverse correlation), I like the one posted at http://www.dailyfx.com . Or just google for it. More important than avoiding a trade in correlated pairs, in my opinion, is to manage the compounded risk. I, for example, like to take many small positions across pairs rather than a big one in just one pair.

Hope this answers your questions,

Jesper
  • #71
  • Feb 4, 2010 9:01am Feb 4, 2010 9:01am
Okay the chart above that Wes posted reads -0.150 correct?
Well on that same chart to the left is also the uptrend which is above the Zero line at the same time. Does anyone understand what I am talking about. I am so darn confused.
R






Quoting jesperweber
Randy,

You're looking at it correctly. The AO oscillates around the zero line, with positive reading above the line indicating an uptrend and, vice versa, a negative reading below the line indicating a downtrend.

The x-axis is the timeline, so you find the current reading on the extreme right, where the candle is showing you the current price.

Where you typed "up" price was in an uptrend, then it changed to a downtrend, which you identified by typing in "down". This was confirmed by the Trend-Lord indicator changing from a bullish blue...
One good turn gets most of the blankets.
  • #72
  • Feb 4, 2010 9:12am Feb 4, 2010 9:12am
Quoting randy1953
Okay the chart above that Wes posted reads -0.150 correct?
Well on that same chart to the left is also the uptrend which is above the Zero line at the same time. Does anyone understand what I am talking about. I am so darn confused.
R
Randy,

The x-axis is the timeline. The further left, the more in the past you are. So in the past/to the left you had an uptrend, which then reversed into a downtrend further right. That downtrend was still indicated on the last candle on the far right.

Think about looking at a weekly calendar. Starts on Sunday on the left of the page, today is Thursday, you've progressed to the right side of the page.

Point is, the indicator was up in the past and is down now, not up and down "at the same time".

J.
  • #73
  • Feb 4, 2010 9:21am Feb 4, 2010 9:21am
hey jesperweber thanks for the explanation! i understand now. that a.o indicator, snt that a macd?
  • #74
  • Feb 4, 2010 9:26am Feb 4, 2010 9:26am
Quoting dappa
hey jesperweber thanks for the explanation! i understand now. that a.o indicator, snt that a macd?
Sorry, I don't understand what you mean by "snt". Anyway, the AO has nothing to do with MACD. If you're interested in Bill Williams' chaos trading and how the indicators are derived, here's a very good explanation:

http://www.alpari.co.uk/en/alpari_ac...ill_chaos.html

MACD, incidentally, was developed by Gerald Appel, a different famous analyst if you want to google him.

J.
  • #75
  • Feb 4, 2010 9:26am Feb 4, 2010 9:26am
Quoting randy1953
Okay the chart above that Wes posted reads -0.150 correct?
Well on that same chart to the left is also the uptrend which is above the Zero line at the same time. Does anyone understand what I am talking about. I am so darn confused.
R
Hi Randy,

Before trying to understand any of the systems on Forex Factory i would suggest learning the basics of forex and forex charts first.

Google babypips and go through there school.

Wes
  • #76
  • Edited 10:04am Feb 4, 2010 9:32am | Edited 10:04am
Perfect it's like seeing the sun come out..
many thanks Jesper

BTW I am making a killing on the eur/usd she been falling like a rock, Gold is way down looks like the eur/usd may get into the .3600s
I have a 4 lot trade at entry 1.3821, current is 1.3783!!!
Whoopee



Quoting jesperweber
Randy,

The x-axis is the timeline. The further left, the more in the past you are. So in the past/to the left you had an uptrend, which then reversed into a downtrend further right. That downtrend was still indicated on the last candle on the far right.

Think about looking at a weekly calendar. Starts on Sunday on the left of the page, today is Thursday, you've progressed to the right side of the page.

Point is, the indicator was up in the past and is down now, not up and down "at the same time".

J.
One good turn gets most of the blankets.
  • #77
  • Feb 4, 2010 9:59am Feb 4, 2010 9:59am
Quoting randy1953
I have a 4 lot trade at entry 1.321, current is 1.3783!!!
Whoopee
Well, I sure hope then that you went long and trailed your stop after making over 500 pips already... On four lots, $20,000, not bad...

Seriously, don't overtrade. Common, or rather: standard, wisdom is to take one full lot (100k units) per $50,000 in trading equity. Congratulations if you have $200,000 or more in your account to trade with, if it happens to be less you may want to scale down a bit to sleep better at night.
  • #78
  • Feb 4, 2010 10:08am Feb 4, 2010 10:08am
Oops sorry I stoped for a while I read your post and I had to look again I forgot to add the 8
1.3821, current is 1.3783!!!

4 lots at 500:1 leverage. When I see a clear strong trend I use the anti-martingale it works wonderful just keep doubling on the way down to profit. So not quite $2000 more like $1520
Randy



Quoting jesperweber
Well, I sure hope then that you went long and trailed your stop after making over 500 pips already... On four lots, $2,000, not bad...

Seriously, don't overtrade. Common, or rather: standard, wisdom is to take one full lot (100k units) per $50,000 in trading equity. Congratulations if you have $200,000 or more in your account to trade with, if it happens to be less you may want to scale down a bit to sleep better at night.
One good turn gets most of the blankets.
  • #79
  • Feb 4, 2010 10:11am Feb 4, 2010 10:11am
Quoting randy1953
Oops sorry I stoped for a while I read your post and I had to look again I forgot to add the 8
1.3821, current is 1.3783!!!

4 lots at 500:1 leverage. When I see a clear strong trend I use the anti-martingale it works wonderful just keep doubling on the way down to profit. So not quite $2000 more like $1520
Randy
Randy,

I really hope you're having us on here...

If not, at the risk of making a fool of myself: take your profits and get out of trading. NOW.

Flame me for this if you like. My intentions are good.

J.
  • #80
  • Edited 10:47am Feb 4, 2010 10:18am | Edited 10:47am
Actually this system works well you just need to be very good at spotting a trend. When she broke the 1.3800 it was major major for the eur/usd.
Wait and see look at 1.3757 today.
No am not having my way I have been doing this for over a year. I am so far ahead of the game I can loose a whole week straight and stil be up the way I trade. Look into the anti-martingale way of trading.
Anyhow thanks for all your help with this system I never use charts like these for my trading. Good to know
Randy

I know your intentions are good it's not personal but I can uderstand why you said what you said. You see I use some common charting software what got me confused with this was the template I never thought to look at it like I do on my normal mt4 charts to scroll back and forth. Anyhow I use a combination of stats and programs to plot events just like what we are seeing today with the eur/usd I then use a ea that is prorgamed to use a antiimartingale system as it builds up lot size as it moves through profit zone. I am always looking at other ways to spot good trends the reason why I am looking at this.
Have a good one I am
Randy

Quoting jesperweber
Randy,

I really hope you're having us on here...

If not, at the risk of making a fool of myself: take your profits and get out of trading. NOW.

Flame me for this if you like. My intentions are good.

J.
One good turn gets most of the blankets.
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