A trader must be humble - else the market would humble him.
Trading with Heiken Ashi and Heiken Ashi smoothed - Hybrid
- #24
- Oct 24, 2011 12:55pm Oct 24, 2011 12:55pm
- | Joined Oct 2011 | Status: In your head, eating your brain | 2,562 Posts
Played around with this today as I always liked Heiken Ashi 
Using TMS-Osc Histogram, 5 EMA (shifted 2, typical price), 5 LMA (0 shift, linear weighted), and the Synergy MTF indicator for confirmation.
Entry:
1) Smoothed > Regular (for long), Smoothed < Regular (short)
2) 5 EMA > 5 LMA (for long), 5 EMA < 5LMA (for short)
3) TMS-Osc Histogram = green (for long), TMS-Osc Histogram = red (for short)
4) Synergy MTF has to show uptrends/downtrends down to 15min
Exit:
1) Stop loss or trailing stop gets hit (depends on time frame)
2) TMS-Osc Histogram turns red/green
3) MAs cross in opposite direction
4) Synergy MTF turns the other way for all timeframes leading up to the one you're trading.
Did some visual backtesting only so far, but results look promising. Using those indicators for confirmation helps in dodging quite a few fake breakouts.
Jumping into a trend a bit late isn't horrible too, as the indicators provide for a decent warning once things go "south".
This thing seems to be working better for 1hr+ time frames though as you end up with too many unnecessary losing/BE trades if you go lower.
I can upload indicators/template if anyone's interested. It would obviously rock if someone created an EA for this setup...not sure how viable this is though. If possible, it would be cool to be able to change entry/exit requirements by excluding some indicators for the decision process whenever the situation calls for it.
EDIT: Also, stay away from ranging markets with a tight range...you'll get burned badly
Using TMS-Osc Histogram, 5 EMA (shifted 2, typical price), 5 LMA (0 shift, linear weighted), and the Synergy MTF indicator for confirmation.
Entry:
1) Smoothed > Regular (for long), Smoothed < Regular (short)
2) 5 EMA > 5 LMA (for long), 5 EMA < 5LMA (for short)
3) TMS-Osc Histogram = green (for long), TMS-Osc Histogram = red (for short)
4) Synergy MTF has to show uptrends/downtrends down to 15min
Exit:
1) Stop loss or trailing stop gets hit (depends on time frame)
2) TMS-Osc Histogram turns red/green
3) MAs cross in opposite direction
4) Synergy MTF turns the other way for all timeframes leading up to the one you're trading.
Did some visual backtesting only so far, but results look promising. Using those indicators for confirmation helps in dodging quite a few fake breakouts.
Jumping into a trend a bit late isn't horrible too, as the indicators provide for a decent warning once things go "south".
This thing seems to be working better for 1hr+ time frames though as you end up with too many unnecessary losing/BE trades if you go lower.
I can upload indicators/template if anyone's interested. It would obviously rock if someone created an EA for this setup...not sure how viable this is though. If possible, it would be cool to be able to change entry/exit requirements by excluding some indicators for the decision process whenever the situation calls for it.
EDIT: Also, stay away from ranging markets with a tight range...you'll get burned badly
- #25
- Edited 2:48pm Oct 24, 2011 2:01pm | Edited 2:48pm
- | Joined Jun 2009 | Status: Chartist | 134 Posts
Played around with this today as I always liked Heiken Ashi
Using TMS-Osc Histogram, 5 EMA (shifted 2, typical price), 5 LMA (0 shift, linear weighted), and the Synergy MTF indicator for confirmation.
Entry:
1) Smoothed > Regular (for long), Smoothed < Regular (short)
2) 5 EMA > 5 LMA (for long), 5 EMA < 5LMA (for short)
3) TMS-Osc Histogram = green (for long), TMS-Osc Histogram = red (for short)
4) Synergy MTF has to show uptrends/downtrends down to 15min
Exit:
1) Stop loss or trailing stop gets hit (depends on time frame)
2) TMS-Osc...
I was backtesting the system on all time frames..I found H4 to be the best though - what are your thoughts?
H1 - sure you can take pips in and out of short moves but its just too tedious and taxxing on the emotions man!
Haha about the EA - tell me about it, I have been begging all around for a coder to code this baby - sure I will post it if I get a good one - afterall caring is sharing!
About the templates, please do post the templates as I am sure many would find it useful. Could you also help me post a default template of my original creation? Thanks.
I was looking for someone to code a simple EA based on my simple idea of the two HAs to cross - very simple coding as I have studied VB before but I don't know how to handle MQL - neither do I remember my VB stuff anymore.
So yea..keep the posts and backtests results coming.
P.S: If you can catch an entire H4 move without your emotions hitting ur head - you can well over catch a few hundred pips on each swing - precisely why I am searching for an EA for this!
Cheerz buddy!
P.P.S: Could you also post a chart with all your indis and entry/exit rules highlighted?
A trader must be humble - else the market would humble him.
- #26
- Oct 24, 2011 2:52pm Oct 24, 2011 2:52pm
- | Joined Oct 2011 | Status: In your head, eating your brain | 2,562 Posts
I agree, 4hr seems to work best...but anything longer will do just fine. You could probably make it work at lower timeframes, but I agree, it will be mentally taxing as a ton of trades will hit breakeven or your stop loss because of fake breakouts.
My template's attached:
1) Synergy MTF: Arrows show strong movement, blue or red square means momentum is slowing
2) TMS-Osc Histogram 3 timeframes: Love this one. A good entry is when all 3 line up either red or green. To the 4hr TF, I show 1hr/4hr/1d timeframes...higher aren't necessary as they...
Nice effort going on there - take it as a testimonial to the potential of this system - altho more testing is essential.
As for Ichimoku - damn I have always found it so difficult to understand that messy baby - altho I have heard much good reviews about it being a good "leading" indicator.
Sure mate about the pics, you could post one when ur free - together with your P/L if you wouldn't mind
Take care and cheerz!
A trader must be humble - else the market would humble him.
- #30
- Edited 4:01pm Oct 24, 2011 3:46pm | Edited 4:01pm
- | Joined Oct 2011 | Status: In your head, eating your brain | 2,562 Posts
Ok, below's a pic of the daily chart for USDCAD. Trading starts at 13 July 2011 until today...and it turns out one trade went against me, and losses could have been minimized with a good stop loss. I picked a "bad" stop loss of 85 pips, and still ended up with 1,338 pips for the period. Not bad given it's low-stress daily chart trading, and only 1 pair
http://dl.dropbox.com/u/5156645/Smoo...AD%20Daily.jpg
Entry 1: MA cross, TMS Histogram lines up on all timeframes, price action would have been trending down on Synergy, HA < Smooth HA
Exit 1: You could have picked your exit like me when the TMA Histogram went green on all timeframes, could have waited for the MA cross, could have waited until HA > Smooth HA. The difference in pips lost isn't massive.
Entry 2: HA < Smooth HA, LMA > EMA, TMA Histogram lines up green
Exit 2: TMA Histogram lines up red, or you could have waited for the MA cross or the HA cross
Entry 3: TMA Histogram lines up red, LMA < EMA, Smooth HA > HA
Exit 3: TMA Histogram lines up, MA cross, Smooth HA <= HA
Entry 4: TMA Histogram lines up, MA cross, Smooth HA <= HA
Exit 4: TMA Histogram lines up, MA cross (close = flat...you could wait for the full cross)
Entry 5: HA > Smooth HA, TMA histogram lines up, LMA < EMA
Exit 5: Here we get stopped out...exit depends on stop loss settings (depends on TF and ATR)
Entry 6: TMA Histogram lines up, HA > Smooth HA, LMA > EMA
Exit 6: TMA Histogram lines up, MA cross imminent (hook)
Entry 7: TMA Histogram lines up, EMA > LMA, Smooth HA > HA
Exit 7: Still running
I'm pretty confident on entries, but still working on my exit strategy...needs further testing. Also playing with stop loss settings, but overall this strategy seems to have a high winning % at higher timeframes. It doesn't take long to check whether or not a currency is worth of a trade once you got the indicators set up...so I guess it's best to focus on the daily (or 4hr) and trade a ton of different currencies.
The difficulty will be in setting decent "emergency" stop loss levels and not to over trade. Skimming through tons of currencies should give you plenty of opportunities and prevent you from spazzing out though
Also, as you might have noticed, I'm using quite a few other indicators for confirmation. I just don't feel too comfortable using just HA. Still working on the combination of entry/exit signals...maybe I enter/exit if 2 out of 4 (HA, MA, TMA Histogram, Price Action) indicators match up, maybe 3 out of 4, maybe 4 out of 4. Will have to run some tests
Something I haven't shown is the support/resistance analysis that goes along with trades...but like I said, I'm using Ichimoku for that and don't wanna derail the thread.
EDIT: Just fyi, USDCHF is lining up for a nice short with this system, and all signs point down based on Ichimoku too.
http://dl.dropbox.com/u/5156645/Smoo...AD%20Daily.jpg
Entry 1: MA cross, TMS Histogram lines up on all timeframes, price action would have been trending down on Synergy, HA < Smooth HA
Exit 1: You could have picked your exit like me when the TMA Histogram went green on all timeframes, could have waited for the MA cross, could have waited until HA > Smooth HA. The difference in pips lost isn't massive.
Entry 2: HA < Smooth HA, LMA > EMA, TMA Histogram lines up green
Exit 2: TMA Histogram lines up red, or you could have waited for the MA cross or the HA cross
Entry 3: TMA Histogram lines up red, LMA < EMA, Smooth HA > HA
Exit 3: TMA Histogram lines up, MA cross, Smooth HA <= HA
Entry 4: TMA Histogram lines up, MA cross, Smooth HA <= HA
Exit 4: TMA Histogram lines up, MA cross (close = flat...you could wait for the full cross)
Entry 5: HA > Smooth HA, TMA histogram lines up, LMA < EMA
Exit 5: Here we get stopped out...exit depends on stop loss settings (depends on TF and ATR)
Entry 6: TMA Histogram lines up, HA > Smooth HA, LMA > EMA
Exit 6: TMA Histogram lines up, MA cross imminent (hook)
Entry 7: TMA Histogram lines up, EMA > LMA, Smooth HA > HA
Exit 7: Still running
I'm pretty confident on entries, but still working on my exit strategy...needs further testing. Also playing with stop loss settings, but overall this strategy seems to have a high winning % at higher timeframes. It doesn't take long to check whether or not a currency is worth of a trade once you got the indicators set up...so I guess it's best to focus on the daily (or 4hr) and trade a ton of different currencies.
The difficulty will be in setting decent "emergency" stop loss levels and not to over trade. Skimming through tons of currencies should give you plenty of opportunities and prevent you from spazzing out though
Also, as you might have noticed, I'm using quite a few other indicators for confirmation. I just don't feel too comfortable using just HA. Still working on the combination of entry/exit signals...maybe I enter/exit if 2 out of 4 (HA, MA, TMA Histogram, Price Action) indicators match up, maybe 3 out of 4, maybe 4 out of 4. Will have to run some tests
Something I haven't shown is the support/resistance analysis that goes along with trades...but like I said, I'm using Ichimoku for that and don't wanna derail the thread.
EDIT: Just fyi, USDCHF is lining up for a nice short with this system, and all signs point down based on Ichimoku too.
- #31
- Oct 24, 2011 5:05pm Oct 24, 2011 5:05pm
- | Joined Oct 2011 | Status: In your head, eating your brain | 2,562 Posts
Ok, below's a pic of the daily chart for USDCAD. Trading starts at 13 July 2011 until today...and it turns out one trade went against me, and losses could have been minimized with a good stop loss. I picked a "bad" stop loss of 85 pips, and still ended up with 1,338 pips for the period. Not bad given it's low-stress daily chart trading, and only 1 pair
http://dl.dropbox.com/u/5156645/Smoo...AD%20Daily.jpg
Entry 1: MA cross, TMS Histogram lines up on all timeframes, price action would have been trending down on Synergy,...
However, did notice that some main rules of the original system was tweaked with - eg exit on 1st candle closing in opposite color. Why so buddy? Does it make a significant difference? Could it be more hurtful if held onto a trade with a candle going against you?
And of course haha there are more than enough pips in any one chart for literally no work using the daily tf I'd say! Once an EA is successfully coded for this, its going to be travelling around the world holidaying only! lol! I think that could be done even with the daily TF with a laptop haha!
Also, I was thinking, would H4 possibly give us better pip results in the end of the test period? Cause definitely we will get earlier exits and earlier entries wouldn't we? Hmm still contemplating which TF to test this baby with on live trading. At the moment, I am testing on H4 and its going well (maybe too early to tell) haha! But I see the light at the end of the tunnel! Hopefully that ain't no train!
Thanks for your effort buddy, keep the healthy posts coming and would love to see your foreward test results too (I don't expect that soon since this is a system for higher TFs generally) lol!
Cheerz buddy!
A trader must be humble - else the market would humble him.
Road to financial freedom
- #40
- Oct 25, 2011 5:23am Oct 25, 2011 5:23am
- | Joined Oct 2011 | Status: In your head, eating your brain | 2,562 Posts
Heh, guess I'm not the only one using Ichimoku to back up those HA candles
Seems to be a really nice combo. HA and the other indicators are lagging, while Ichimoku is forward looking and showing support/resistance levels.
Won't be able to re-upload my template until later tonight or tomorrow I'm afraid, too busy at work. But if got them all from this forum, so just do a search if you're impatient
Seems to be a really nice combo. HA and the other indicators are lagging, while Ichimoku is forward looking and showing support/resistance levels.
Won't be able to re-upload my template until later tonight or tomorrow I'm afraid, too busy at work. But if got them all from this forum, so just do a search if you're impatient